10/21/05 Now I have to deal with IB 535/550/565. I legged out by bought back 550 call first for 0.15 and bought back 550/535 put back for $2.8. It was a stressful day and I was lucky to get out of this one for the profit of 4.2 - 2.8 - 0.15 = $1.35
Summary for October XEO result: Start with loss on 1 570/555 put credit $3.5 Sold 1 IC 545/560/565/580 for credit $7.25 Bought back IC for debit $4.55 Sold 1 IB 535/550/565 for $4.20 Bought back IB for debit $2.95 Total -$3.5 + 7.25 - 4.55 + 4.2 - 2.95 = $0.45. After commissions, my $45 profit is probably around $0. Overall, I'm satisfy with the break even or a small lost this month consider that the index was down quite a bit. I managed to train myself to wait.
10/20/05 XEO was around 543. I opened 1 540/530 Nov put spread for $2.4. I'm waiting to sell call spread next week.
10/25/05 Bought back 540 put for $3.3. Made 6.1 - 3.3 = $2.8. XEO drops more so I sold 550 at the end of the day for $5.7. Now I have 530/550 credit put spread. As for expectancy, I've positive expectancy after adjustments. I got $2.8 credit extra. Still looking to sell call credit spread on XEO.
Sold 550/560 call credit spread today for $4.50. I should have done 555/565 instead when the index was 553 but I was too greedy. Summary: Now I have 530/550/560 unbalance IB. I hope I can trade on this position.
They are real at Think or Swim. I was looking at $3000 option courses. Then, Michael Catolico who posted at yahoo option club exaplained to me 4 important things 1. I don't have edge in selling premium or buying premium. 2. Each trade is a negative expectancy but I can build positive expectancy due to adjustment. 3. I have to be a good trader to make money on option trading. 4. Position sizing. So, I decide that I'd rather trade and learn it this way. We'll see how many months I last before I used up my $3000 tutions. -Nick
11/02/05 Bought back 550 put for 2.7 (sold for 5.7), Sell 530 put for 0.55 (bought for 3.7). Buy one extra 550 put for 2.7. My position is +550 put, -550, +560 call. I spent $5.4-0.55=$4.85 today but collected credit $8.1 on the put side and $4.5 on call side. Total credit is $7.75. The same position open today will be around $4.0 credit. So, on the expectancy side, I'm $3.35 ahead. Waiting for index to come down hopefully to do something on the put side.
Skanan, Just wanted to say, keep it up. I trade credit spreads on the XEO myself occasionally so might contribute here now and then. Mostly I can be found rambling nonsense on Phil's SPX Credit spread thread. Momoney.