Hi Robert, thank you for the reply. Yes it is options spreads I am referring to, not futures as that is a separate product I am aware of. So are...
Hello all Recently I opened a paper money account with Interactive Brokers, mainly with the purpose of trading options to test strategies etc....
There needs to be sufficient liquidity to open 1 thousand, 10 thousand, or even 100 thousand options contracts. Depending on the underlying...
Yes. I wait for the mid to decrease to a price lower than the credit I receive. I set up a limit order accordingly.
And don't forget liquidity by the way..
In this case, and for similar scenarios, the credit is used as collateral. The full credit is not profit unless the underlying price drops to the...
No, the $10,000 you see is the credit being received for opening this deep in the money call credit spread. As the width of the strikes is equal...
I entered the trades as a single spread order..
I have had these filled in the past..
Well yes, I see your point. But every now and then, anomalies occur in options trading. And I have actually been filled in these type of spreads...
Yes, I profit mainly by trading in the range of the mid price. I have done quite well from this strategy, and the more contracts, the more profit.
The margin requirement for vertical spreads is width of the strikes, minus price. So in this case, the margin is actually 0. When I said...
The mid price just has to reach the lower price. In other words, as per my example, the mid would need to reach 98 and I then set up a buy limit...
Yes, that is the price of the underlying NDX. However I am referring to the mid price of the credit spread. The width of my chosen strikes here is...
I have not opened the trade yet as the market is closed. However, if the price were to drop to say 98, from 100, the profit would be $200 per...
So I am a big fan of vertical credit spreads in options trading, mainly because they have limited risk. Of course, the reward is also limited,...
Yes indeed. One full point move with an order of this size would be worth 20 million, up or down.
Just trying to gauge whether this can be done really. Tapping into the largest contract sizes can be the most profitable, especially when some...
Has anyone on this forum ever hit the 200k or more number of contracts when trading options? I know the threshold for equity options is 250k, and...
Yes limit orders, I meant to specify in my post.
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