SPX Credit Spread Trader

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

  1. ryank

    ryank

    I wish I had my Oct/Nov diagonals in place right now, I liked the prices and strikes the last few days better than today. Strike selections are a bit thin for the Nov/Dec but it looks like there are some good plays there. Just need to keep looking for the right opportunity.
     
    #10171     Sep 15, 2006
  2. rdemyan

    rdemyan

    Attached is updated Thursday close to Friday SET spreadsheet for the past 8+ years.
     
    #10172     Sep 15, 2006
  3. I did have a "funny" today. As soon as SET and margin released my flying fingers landed a "wonderful" credit fill on a 1370/1385 bear call for 2$...fortunately at the time I was chatting with Scott & Steve (cachecash) and they said WOW...hummmm are you sure that was OCT! Holy crap no....it was NOV:eek: they said ask TOS to bust the trade. I was hesitant but finally did and they DID! WHEW....no more flying fast fingers for me....
     
    #10173     Sep 15, 2006
  4. tplast

    tplast

    Wow, that's impressive. Too bad they don't operate in Canada :( . Did they originally take the other side or your trade or did they basically sold you one back for $2 to make you even? They cannot really bust the trade from a third-party, or can they?
     
    #10174     Sep 15, 2006
  5. have no clue how they did it...just know they did it...my trade was null and void after my whine :)
     
    #10175     Sep 15, 2006
  6. rdemyan

    rdemyan

    I didn't realize such a thing was possible. I wonder if I can ask them to bust my trades after they get into trouble :)

     
    #10176     Sep 15, 2006
  7. Here's how it works: The broker asks the party (or parties) on the other sdie of the trade if they would be willing to let the customer (who made an error) out of the trade. Sometimes they do, sometimes they don't. But, I have never heard of a broker who would take the trade just to let a customer out of the trade.

    Mark
     
    #10177     Sep 15, 2006
  8. That's mostly correct, but I know of many occassions where the person on the fortunate end was not asked. As far as I know, the broker can bust the trade without permission if it is an obvious error.
     
    #10178     Sep 15, 2006
  9. tplast

    tplast

    I can understand that if the price is far away from the market, but it would be chaos if trades inside the market could be arbitrarily busted.
     
    #10179     Sep 15, 2006
  10. In all my years as a CBOE market maker, I was never FORCED to bust a trade. We did it when we felt it was really an error.
    Things may be different today.

    Mark
     
    #10180     Sep 15, 2006