SPX Credit Spread Trader

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

  1. ryank

    ryank

    Jan 1455 calls aren't available in ToS, how did you get the graph? Did the software plug in a theo price? I do like the position though.
     
    #12091     Nov 17, 2006
  2. uglyboy

    uglyboy

    Calculated this am with Optionvue's Theo price. We'll see in half an hour if it's possible. Good luck with yours - if you get a volty increase, do you plan to offset, or hedge vega, or something else?
     
    #12092     Nov 17, 2006
  3. Coach and others,

    I think you can use ToS for a good estimation of your risk profile, but it won't be able to give you the exact graph.

    Because the vol skew,
    1. Assuming ATM vol doesn't change, and if price goes up, the otm call vol and otm put vol will both increase in value.
    2. If pirce goes down, both your call vol and put vol will decrease in value. However since vix will increase, and so it will increase the vol for all options. The net effect is not known until we have a model

    Any comments? Any suggestion for simple method to model or adjust the vol?
     
    #12093     Nov 17, 2006
  4. ryank

    ryank

    A vol spike, if juicy enough, may be hard to pass up for a quick profit :).
     
    #12094     Nov 17, 2006
  5. rdemyan

    rdemyan

    Coach:

    You still have OptionVue don't you. How does the chart change when you model this in OptionVue?

     
    #12095     Nov 17, 2006
  6. what time is the SET usually announced for the SPX?
     
    #12096     Nov 17, 2006
  7. uglyboy

    uglyboy

    Pray for uncertain times. Is it "unAmerican" to hope for volatility?
     
    #12097     Nov 17, 2006
  8. With OptionVue I can enter the exact price for each leg where I believe I will get filled so it feels more realistic. I am sure the general chart shape will be the same, it just maybe off a bit due to pricing.

    I will enter it in and see how it looks and post a pic.

     
    #12098     Nov 17, 2006
  9. Around noon est
     
    #12099     Nov 17, 2006
  10. 12:30 -ish

     
    #12100     Nov 17, 2006