SPX Credit Spread Trader

Here are a couple of Word files which I have copied some interesting stuff from this thread. May be some overlap. Have other files on another computer, so I will upload later if I have a chance.

 

Filled today on 5 Jan. 1470/1480 @.90 credit spreads (don't want to risk too much margin since this is my first attempt at SPX spreads). Thinking we may be in for a short term drop in the market before the next leg up. If not then I get to try some hedging tactics.

 

I am actually looking at strikes near there myself. I think 50 points is worrisome as a cushion given the way the markt moves higher but we may move a little sideways and meander. I am gonna try and go another 15 points higher if I can on Monday.

 

Shouldve had those friggin tent poles.

 

Although the instructional material in this thread is superb, unfortunately, due to a failure in TECHNOLOGY, it is very, very difficult (read: nearly impossible) to capture all of this thread into a single Word or PDF document.
I tried once, and it failed. I contacted ET tech support, and they said it was a limit with the forum software.
There is apparently a limit to the number of pages this forum software can render in Print mode. In hindsight, this thread should have been broken into about 10 pieces.

 

the last time the VIX was this low... below 10 .... the 20 point wide SPX diagonal spreads for the front month were as low as $1.50 for a (short) time.... then they ballooned to over $3.00

now i am looking at them and they seem more expensive... at $2.50 or more.... after this last jump up and VIX drop.


does anyone know why they are more expensive now ?

this is a question from a newbie.

I would like to enter a diagonal this month if i can but they just seem too expensive now.

 

Wow. Strangely, "Helicopter Ben" had criticized the Fed for dropping money from helicopters. Now, he's doing it himself ! We've got a massive sea of liquidity lifting the equity markets....and if it (M3) ever stops....well you know the rest of the story.

 

Great stuff. Thank you.

 

Here is another one. Again, there may be some overlap.

 

I'm over 100 pages late to this party, but can I ask a simple question?

Is there a theoretical edge to this method or does it come from directional bets on the SPX with a wider margin of error due to time decay working in your favor?

Traveler