SPX Credit Spread Trader

Discussion in 'Journals' started by El OchoCinco, May 17, 2005.

  1. 10,000 posts

    ...back to lurking with me
     
    #9991     Sep 11, 2006
  2. mantenar

    mantenar

    Sailing,


    Can you please provide an update on your Diagonal positions and also your adjustment plans.
     
    #9992     Sep 12, 2006
  3. Hi,

    Can someone who uses TOS tell me what exchange $RUT is usually cleared by?

    OX used to use ISE, but now they appear to be using CBOE which sucks for fills.

    What does TOS use?

    Using TOS, can you pick your exchange, say ISE, to try to sell your condor on?

    frisbeeca
     
    #9993     Sep 12, 2006
  4. TOS is showing CBOE, AMEX and ISE for RUT
     
    #9994     Sep 12, 2006
  5. You can pick your exchange with TOS but the software will by default locate the best fill at that moment...
     
    #9995     Sep 12, 2006
  6. UPDATE- CALL DIAGONAL POSITION


    Sold 135 SEP EW 1340 Calls @ 6.50 ($43,875 Credit)

    Bot 150 OCT ES 1360 Calls @ 5.25 ($39,375 Debit)

    Net Credit = $4,500

    Max Theoretical Risk = $150,000
    Current Return on Risk = 3%


    -----------> Spread can be closed right now for 0.10 credit and additional profit. I do not see much strength to the upside so I may leave it there to have the 1340 expire worthless and grab additional profits on the OCT ES calls. I am also interested in adding to the position for the last two weeks as I really feel that with a Fed meeting coming up and not much great news coming and that we are in SEP and OCT, the futures will not have much power to push over 1340... Look for an update shortly as I have an order pending.

    Thanks Murray!
     
    #9996     Sep 12, 2006
  7. jeffm

    jeffm

    For educational purposes, here is an update on an ES put diagonal I just closed.

    8/14 ES 1281 VIX 13.5
    I sold SEP 1200P and bot OCT 1230P for a net debit of (2.25).
    9/12 ES 1319 VIX 12.36
    I closed the diagonal for a credit of 1.75 for a loss on the trade of (0.50).

    I could have exited yesterday morning for near b/e, but was busy with work and got caught unaware with the surge later in the day.

    In the end, ES is over 30 points higher than when I entered the put diagonal. VIX is a full point lower, and I could have timed my exit better. Yet I still only lost 0.50 on the trade. I also had options to sell against the long 1200, but chose to just clear this one off the books.

    I also have a -SEP1260P/+OCT1230P that is about 0.50 above b/e. If I can get a good price to cover the 1260 shorts, I will close them and create a bull put spread with the OCT1230.

    I am experimenting with a 1lot SEP EW 1335C / OCT ES 1350C diag entered for a debit of (0.75). VIX has already dropped quite a bit on the turn up, so I am relatively protected from a volty collapse. The 1335 target is a few points above the most recent swing high.

     
    #9997     Sep 12, 2006
  8. UPDATE- CALL DIAGONAL POSITION


    Sold 135 SEP EW 1340 Calls @ 6.50 ($43,875 Credit)

    Bot 150 OCT ES 1360 Calls @ 5.25 ($39,375 Debit)

    Net Credit = $4,500

    Max Theoretical Risk = $150,000
    Current Return on Risk = 3%

    I shorted 2x as many SEP EW and added more OCT ES to even out the legs.

    I did so by shorting 135 SEP EW 1340 Calls @ 3.30 ($22,275) and buying 120 OCT ES 1360 Calls at 2.75 ($16,500) for a net credit of $5,775.

    New Net Credit = $10,275

    Max Theoretical Risk = $270,000

    Return = 3.8%


    Potential for large additional returns at expiration of short EW calls. I will have tight controls on this position to make sure it does not run away from me with 2.5 weeks to EW expiration.
     
    #9998     Sep 12, 2006
  9. Thank you.
     
    #9999     Sep 12, 2006
  10. ryank

    ryank

    Last few days before expiration and the market is pushing towards my short on my sep 1325/oct 1350 call diagonal. Showing a good profit with more room to go (but not too far!). Will look for a good exit soon. Will take some time to get used to cheering the market on towards my short strike.
     
    #10000     Sep 12, 2006