SPX Credit Spread Trader

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

  1. kapil

    kapil

    Piccon,

    Do you leg in to these spreads or place the orders as spreads?

    Kapil




     
    #12871     Jan 23, 2007
  2. piccon

    piccon

    I wouldn't leg in; too risky

     
    #12872     Jan 23, 2007
  3. piccon

    piccon

    If you are scared or not willing to lose at all, don't even try this.

    Alos, timing is key; If you don't know when to get in, you may end up a loser or you will always finish ITM

     
    #12873     Jan 23, 2007
  4. I think piccon has responded to your concern, and i just explain why I made the trade myself.

    I don't have any CTM vertical. I have a combo with many long calls at different strikes and different expiration. In short, these CTM short calls are protected by many long calls (like a diagonal).

    You cannot look at one trade to declare if it is risky or not. Look at market makers, they short a lot of ITM, ATM and CTM options, but these are hedged by other means (other long options, or the underlying). I manage the whole book using my own method. Perhaps Mark can give us insights on how market makers make money by managing their books.
     
    #12874     Jan 23, 2007
  5. Crucis

    Crucis

    Anyone kow what caused the VIX spike this morning? It topped 20 before returning to below 11.

    Cru
     
    #12875     Jan 23, 2007
  6. You have bad data.

    Mark
     
    #12876     Jan 23, 2007
  7. Crucis

    Crucis

    It appears on both ToS and OX as well as Yahoo Financial.
     
    #12877     Jan 23, 2007
  8. c*f(x)

    c*f(x)

    I think those sources must be from a similar feed. The spike does not show up on Bloomberg. Bad data.
     
    #12878     Jan 23, 2007
  9. To take advantage of the low IV today (rvx at 17 at trading time)
    bto rut jun 900 call x 6 @3.7
    sto rut dec 800 call x 2 @ 6.6
     
    #12879     Jan 23, 2007
  10. I'll gladly take the other side of your spread.

    Did you sell FEB (not dec) 800 call?

    Mark
     
    #12880     Jan 23, 2007