SPX Credit Spread Trader

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

  1. well I do not do a lot of different strategies but another one I dabble in is calendar spreads when there is a nice IV skew. Other than that, just credit spreads really :). I like to keep it simple lol.
     
    #11411     Oct 25, 2006
  2. Gotta love T+0 PnL of 1k+
    Should put that position on every day, several times a day:p
     
    #11412     Oct 25, 2006
  3. MTE

    MTE

    What's the problem with flys in a retail account?:confused:
     
    #11413     Oct 26, 2006
  4. blk

    blk

    There is no problem with regular flies in a retail account. Coach was exploring cross month flies that can be only performed with haircut margin (retail accounts have to use Reg T margin and the cross month fly is not a suitable position for most of us here).
     
    #11414     Oct 26, 2006
  5. MTE

    MTE

    Oh ok, didn't notice that. Thanks!
     
    #11415     Oct 26, 2006
  6. qamhwr

    qamhwr

    I don't see a difference between a cross month butterfly in a retail account and the same strike double diagonal spread done in a retail account. The problem may be the broker.

    George
     
    #11416     Oct 26, 2006
  7. MTE

    MTE

    Unless, it involves shorting the back month, in which case you are considered "naked".
     
    #11417     Oct 26, 2006
  8. ryank

    ryank

    Coach is short Nov, long Dec and short Jan. The Jan shorts would be naked in a Reg T account and the margin would be huge. He is doing the cross month flies in his prop account and gets the haircut margin there to make this position possible.
     
    #11418     Oct 26, 2006
  9. FLYs are cool! Mine is just a combination of short and long calendars. One of the automatic and unfortunate applications of Reg T is that the back months are treated as naked if short, as in a short calendar.

    QUOTE]Quote from MTE:

    What's the problem with flys in a retail account?:confused: [/QUOTE]
     
    #11419     Oct 26, 2006
  10. tplast

    tplast

    You wish ! But unfortunately:

    So no money printing machine :(
     
    #11420     Oct 26, 2006