SPX Credit Spread Trader

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

  1. Alright XEO and SPX you proved your point, now chill the F@#$ out already....jeez
     
    #1341     Oct 19, 2005
  2. lol. Could be the arbs jumping on the rally to balance their books for the month. Classic signs of large buy programs. It just ain't stoppin'. Right up to the bell.

    Momoney.
     
    #1342     Oct 19, 2005
  3. That is what happens when I get cute and roll my XEO calls down for more profit lol. Looks like tomorrow I need to fix my XEO 555 calls unless we get some profit taking in the morning. I went just an inch to far lol. Well what ya gonna do. Adjust and move on ;)

    Phil



     
    #1343     Oct 19, 2005
  4. skanan

    skanan

    I'll probably brake even. I had some 1175 that was rolled down to 1165. I read and was told not to establish one full position at once. That's why it came out like that. I'll reduce the number of contracts more next month.

     
    #1344     Oct 19, 2005
  5. rdemyan

    rdemyan

    Okay. I took the historical VIX and put it across every line that shows the percent change in the SPX from expiration to expiration from 1995 through 2004. Took several hours but I'm hoping we'll be able to draw some conclusions or rules of thumb to help with our risk management. The spreadsheet is attached. The average and median VIX for the period between the expiration dates is shown on every line (along with the standard deviation).

    Let's see what interesting analyses and conclusions we can draw from this.




     
    #1345     Oct 19, 2005
  6. dottom

    dottom

    Choad,

    Do you have numbers for max % move up or down intra-month? A large intramonth could force IC strats to adjust...
     
    #1346     Oct 20, 2005
  7. I hope now everybody has done necessary adjustments and waiting for the expiry.

    So much constructive discussion has taken place whether this is a good or bad strategy and also this is a good or bad product.

    What is the coclusion? Can somebody write in simple English what is best to do. Much appreciated. Thanks
     
    #1347     Oct 20, 2005
  8. Smilingsynic

    Optioncoach

    I am going back to page 180 for your replies.Thanks for giving me the proper name about reverse calendar spread.

    Smiling- You said it would be better to buy Dec and sell Nov. Will this bring me a credit?

    Optioncoach- You have not explored use of calendars in great detail. I will much appreciate if you can give some time to explore this strategy.

    Thanks to both of you.
     
    #1348     Oct 20, 2005
  9. OK, just shoot me now. After holding through all the month, yesterdays revisit to 1170 spooked me. On a bounce back up to resistance, I closed out my put spread. I had to leave for the day, and couldn't watch. Frankly, I wouldn't have watched anyway, too much volatility.

    I closed out for a minor loss. Then, come back at end of day to a HUGE move up. I'm frustrated. But I managed my risk. Followed my plan.

    For those who suggested swing trading at tops and bottoms: That's great, but I OBVIOUSLY can't pick a top or a bottom. And frankly, have trouble telling a trend. So if you can help me, I'd love to hear! Are we going up, down or sideways. (I think the answer is YES!) LOL!:D
     
    #1349     Oct 20, 2005
  10. Choad

    Choad

    Here is the data back to '86 with the lowest and highest % moves from the previous month:

    Code:
    PART ONE
    
    Expiration to expiration changes (at Close) for SP-500
    
    Start   19860117  Price:  208.43
    
    Date:  19860221  Price:  224.62   %Change:  [b][color=red]7.77[/color][/b]        %Change LOWEST:  -2.37     %Change HIGHEST:  7.77
     
    Date:  19860321  Price:  233.34   %Change:  3.88        %Change LOWEST:  -0.37     %Change HIGHEST:  5.31
     
    Date:  19860418  Price:  242.38   %Change:  3.87        %Change LOWEST:  -2.02     %Change HIGHEST:  4.15
     
    Date:  19860516  Price:  232.76   %Change:  -3.97        %Change LOWEST:  -3.97     %Change HIGHEST:  0.97
     
    Date:  19860620  Price:  247.58   %Change:  [b][color=red]6.37[/color][/b]        %Change LOWEST:  0.19     %Change HIGHEST:  6.38
     
    Date:  19860718  Price:  236.36   %Change:  -4.53        %Change LOWEST:  -5.62     %Change HIGHEST:  2.07
     
    Date:  19860815  Price:  247.15   %Change:  4.57        %Change LOWEST:  -0.77     %Change HIGHEST:  4.57
     
    Date:  19860919  Price:  232.21   %Change:  [b][color=red]-6.04[/color][/b]        %Change LOWEST:  -6.67     %Change HIGHEST:  2.70
     
    Date:  19861017  Price:  238.84   %Change:  2.86        %Change LOWEST:  -0.99     %Change HIGHEST:  3.15
     
    Date:  19861121  Price:  245.86   %Change:  2.94        %Change LOWEST:  -1.24     %Change HIGHEST:  3.45
     
    Date:  19861219  Price:  249.73   %Change:  1.57        %Change LOWEST:  0.37     %Change HIGHEST:  3.31
     
    Date:  19870116  Price:  266.28   %Change:  [b][color=red]6.63[/color][/b]        %Change LOWEST:  -3.03     %Change HIGHEST:  6.63
     
    Date:  19870220  Price:  285.48   %Change:  [b][color=red]7.21[/color][/b]        %Change LOWEST:  0.59     %Change HIGHEST:  7.24
     
    Date:  19870320  Price:  298.17   %Change:  4.45        %Change LOWEST:  -1.09     %Change HIGHEST:  4.45
     
    Date:  19870416  Price:  286.91   %Change:  -3.78        %Change LOWEST:  -6.38     %Change HIGHEST:  1.27
     
    Date:  19870515  Price:  287.43   %Change:  0.18        %Change LOWEST:  -1.88     %Change HIGHEST:  2.98
     
    Date:  19870619  Price:  306.97   %Change:  [b][color=red]6.80[/color][/b]        %Change LOWEST:  -3.21     %Change HIGHEST:  6.80
     
    Date:  19870717  Price:  314.59   %Change:  2.48        %Change LOWEST:  -0.97     %Change HIGHEST:  2.48
     
    Date:  19870821  Price:  335.90   %Change:  [b][color=red]6.77[/color][/b]        %Change LOWEST:  -2.16     %Change HIGHEST:  6.77
     
    Date:  19870918  Price:  314.86   %Change:  [b][color=red]-6.26[/color][/b]        %Change LOWEST:  -6.65     %Change HIGHEST:  0.26
     
    Date:  19871016  Price:  282.70   %Change:  [b][color=red]-10.21[/color][/b]        %Change LOWEST:  -10.21     %Change HIGHEST:  4.20
     
    Date:  19871120  Price:  242.00   %Change:  [b][color=red]-14.40[/color][/b]        %Change LOWEST:  -20.47     %Change HIGHEST:  -8.60
     
    Date:  19871218  Price:  249.16   %Change:  2.96        %Change LOWEST:  -7.47     %Change HIGHEST:  2.96
     
    Date:  19880115  Price:  252.05   %Change:  1.16        %Change LOWEST:  -2.31     %Change HIGHEST:  4.78
     
    Date:  19880219  Price:  261.61   %Change:  3.79        %Change LOWEST:  -3.74     %Change HIGHEST:  3.79
     
    Date:  19880318  Price:  271.12   %Change:  3.64        %Change LOWEST:  -0.01     %Change HIGHEST:  3.67
     
    Date:  19880415  Price:  259.77   %Change:  -4.19        %Change LOWEST:  -5.54     %Change HIGHEST:  0.16
     
    Date:  19880520  Price:  253.02   %Change:  -2.60        %Change LOWEST:  -3.24     %Change HIGHEST:  1.60
     
    Date:  19880617  Price:  270.68   %Change:  [b][color=red]6.98[/color][/b]        %Change LOWEST:  -0.87     %Change HIGHEST:  8.47
     
    Date:  19880715  Price:  272.05   %Change:  0.51        %Change LOWEST:  -1.08     %Change HIGHEST:  1.89
     
    Date:  19880819  Price:  260.24   %Change:  -4.34        %Change LOWEST:  -4.91     %Change HIGHEST:  0.34
     
    Date:  19880916  Price:  270.65   %Change:  4.00        %Change LOWEST:  -1.25     %Change HIGHEST:  4.00
     
    Date:  19881021  Price:  283.66   %Change:  4.81        %Change LOWEST:  -0.88     %Change HIGHEST:  4.81
     
    Date:  19881118  Price:  266.47   %Change:  [b][color=red]-6.06[/color][/b]        %Change LOWEST:  -6.99     %Change HIGHEST:  -0.45
     
    Date:  19881216  Price:  276.29   %Change:  3.69        %Change LOWEST:  -0.09     %Change HIGHEST:  4.38
     
    Date:  19890120  Price:  286.63   %Change:  3.74        %Change LOWEST:  -0.35     %Change HIGHEST:  3.84
     
    Date:  19890217  Price:  296.76   %Change:  3.53        %Change LOWEST:  -0.74     %Change HIGHEST:  4.54
     
    Date:  19890317  Price:  292.69   %Change:  -1.37        %Change LOWEST:  -3.25     %Change HIGHEST:  0.90
     
    Date:  19890421  Price:  309.61   %Change:  [b][color=red]5.78[/color][/b]        %Change LOWEST:  -1.27     %Change HIGHEST:  5.78
     
    Date:  19890519  Price:  321.24   %Change:  3.76        %Change LOWEST:  -1.43     %Change HIGHEST:  3.76
     
    Date:  19890616  Price:  321.35   %Change:  0.03        %Change LOWEST:  -0.91     %Change HIGHEST:  1.78
     
    Date:  19890721  Price:  335.90   %Change:  4.53        %Change LOWEST:  -1.05     %Change HIGHEST:  4.53
     
    Date:  19890818  Price:  346.03   %Change:  3.02        %Change LOWEST:  -0.66     %Change HIGHEST:  4.02
     
    Date:  19890915  Price:  345.06   %Change:  -0.28        %Change LOWEST:  -1.55     %Change HIGHEST:  2.23
     
    Date:  19891020  Price:  347.16   %Change:  0.61        %Change LOWEST:  -3.31     %Change HIGHEST:  4.27
     
    Date:  19891117  Price:  341.61   %Change:  -1.60        %Change LOWEST:  -4.19     %Change HIGHEST:  -0.67
     
    Date:  19891215  Price:  350.14   %Change:  2.50        %Change LOWEST:  -0.66     %Change HIGHEST:  3.26
     
    #1350     Oct 20, 2005