SPX Credit Spread Trader

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

  1. Sailing

    Sailing

    If you trade the SPX.... you need to trade through a floor broker. We use LakeShore when we trade the SPX... and the fills with the floor broker are always MID or better.... most of the time better. Identical spreads on ToS or IB... just sit....

    There is a market within the electron B/A on the SPX because it's pit traded... so what you see on your screen.. may not even be close to the real market. The real spread on the SPX.. is about .15 But you see on your screen as much as $1.00

    Use a floor broker if you're serious about the SPX.

    Now.. NDX... is both electronic and pit traded... so the spread is much tighter. But I will say we still use the floor broker for OTM NDX options for fills. The spreads are much wider.. OTM.. and they (floor brokers) can work the volatility in these positions with the market makers for better fills.

    We have also found that using ThinkPipes....instead of ThinkorSwim's platform... smart routes the orders much quicker and better. ThinkPipes is the professional platform of ToS... a little less user friendly, but much more powerful.

    Hope some of this helps,

    Murray
     
    #13641     Jul 30, 2007
  2. Why is IB the exception?
     
    #13642     Jul 30, 2007
  3. Murray,

    I'll check into ThinkPipes, but you may save me a little time. Is this a retail trader avenue?
     
    #13643     Jul 30, 2007
  4. Anybody get burned real good last week? Looked like prime blow-up conditions on freaky friday. :cool:
     
    #13644     Jul 30, 2007
  5. IB has options on futures among the popular option brokers usually discussed here (OX, ToS and IB).
     
    #13645     Jul 30, 2007
  6. Did not get burned. And 'freaky friday' looked to me like nothing more than the big guys exiting their positions 30 minutes prior to mkt close last Friday so that they did not take home any risk. That last 30 minutes was the 'tell' that indicated a pretty good chance that the selling would not continue into Monday.
     
    #13646     Jul 31, 2007
  7. Got it.
     
    #13647     Jul 31, 2007
  8. I am virtually 100% invested in RUT.

    mark
     
    #13648     Jul 31, 2007
  9. Actually I had call spreads which were starting to make me nervous. The sell off was a welcome pull back :)
     
    #13649     Jul 31, 2007
  10. ajna

    ajna

    I second the RUT. Great liquidity, nice volatility, overall nice trading product.
     
    #13650     Jul 31, 2007