SPX Credit Spread Trader

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

  1. Future now down 2.50. It is such a thin market in the after hours for the ES futures I pushed the b/a myself! I was a little restless so I decided to test something with just 1 contract and put in order to buy at the bid of 1179.75 and it was filled shortly after. Then to see if I could move the market I immediately put a sell order in at the ask of 1180. It hit in about 6 minutes lol. Volume is 4 for the time period I traded. Anyway I was just having some fun. After commissions my experiment netted by $4.00. I had a banner day trading the futures due to the wild price swings so I was drunk with power.

    I now take you back to your regualrly scheduled programming....

    Phil


     
    #1671     Oct 27, 2005
  2. My first step might be a partial hedge using the mini-SPX as I was looking at different choices today. I will be more inclined to adjust if we get near 1170 but I want to finance it first with some long puts or put spreads.

    If we have an up day I may still grab the hedge at cheaper prices.

    Phil

     
    #1672     Oct 27, 2005
  3. Sailing

    Sailing

    Coach,

    My current values for November Iron Condor positons:

    SPTWF SPX NOV 1130 Put $4.30 $4,300.00 -1,700.00
    SPTWH SPX NOV 1140 Put $5.40 ($5,400.00) 1,900.00

    SZPKH SPX NOV 1240 Call $0.65 ($650.00) 800.00
    SZPKJ SPX NOV 1250 Call $0.40 $400.00 -350.00

    For a week and a half.... it's not a bad profit, approximately 10%. Although I feel comfortable right now... the latest news and increase in volatility has me thinking.

    Is this an opportunity to double up on some more Puts?

    Roll down calls?

    Close entire position and re-tool for Dec?

    I'm open for suggestions,

    ~ ~ _/) ~
     
    #1673     Oct 27, 2005
  4. Pain, yes, but ONLY if they just bought calls/call spreads and did not attempt to go delta-neutral.

    Sell overpriced (acc to vol) puts/buy underpriced (acc to vol) calls + sell underlying=long-term profits.

    It is sometimes called volatility trading. Natenberg has a section on it.

    Tends to produce more GAIN than PAIN/:)
     
    #1674     Oct 28, 2005
  5. ryank

    ryank

    Is there a web site that has free futures quotes (delayed is fine)? I always see CNBC and others list the futures on screen before the market opens but I don't know where they are getting their information. I've gone to www.cme.com and see that the S&P is +225 or something like that, not sure what to make of that information. I'm just curious as to where this information comes from.

    ryan
     
    #1675     Oct 28, 2005
  6. Chipper7

    Chipper7

    This is the link I use. Outside of regular trading hours, the yellow symbol shows the pre-market levels. Hope this helps.

    http://money.cnn.com/data/markets/index.html

    Chip



     
    #1676     Oct 28, 2005
  7. ryank

    ryank

    That's perfect!

    Thanks Chip

    ryan

     
    #1677     Oct 28, 2005
  8. Thanks for the post for those who want to follow the futures. If you have ToS, they show the futures quotes around the clock which can be traded. I see them also live through TradeStation. The real trading usually kicks in between 6 - 7 AM so if you just turn on CNBC at 6:00 you can follow them there as well throughout the morning until theopening.

    Phil

     
    #1678     Oct 28, 2005
  9. rdemyan

    rdemyan

    Coach:

    Are you considering any bear call spreads before the weekend is upon us and theta kicks in even more?

    I'm considering a 1240/1255.
     
    #1679     Oct 28, 2005
  10. I would love to have the insitutional costs and clout to make those kind of scalp trades!

    Phil

     
    #1680     Oct 28, 2005