SPX Credit Spread Trader

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

  1. skanan

    skanan

    Do you have to pass an exam or certification to join the firm ?

    Would you have BD when you become a member ?


    If you have BD status, when you trade, do you buy at the ask and sell at the bid ?

    Thanks,

     
    #3331     Jan 19, 2006
  2. You have to pass the series 7 and no, once you join the firm, you cannot act like a market maker. You buy at the bid or sell the ask like everyone else, with a limit order ;).


     
    #3332     Jan 19, 2006
  3. Thanks for sharing the selection criteria. Do you use any backtesting software to test these strategies with previous data,you know,just to get confidence?.
     
    #3333     Jan 19, 2006
  4. Market makers kiss my ass.......

    I got filled on 15/125 of 1350/1365 Call Spreads @ $0.35 ( i was real agressive with my limit order).

    So that gives me a limpy bitch Iron Condor with 125 1190/1205 put spreads and.........hold on to your hats....... 15 1350/1365 Call spreads LOL.

    I better get filled on the rest :(
     
    #3334     Jan 19, 2006
  5. Well the main way I get confidence is to have my wife stand behind me while I am trading and every so often slap me on the back and scream "YOU DA MAN!" or "WORK THOSE SPX SPREADS... WHOSE MARKET IS IT?!" And every once in a while I wink over at my hidden picture of Jessica Alba...

    [sorry could not resist]

    Actually for a strategy like this there is really no need for backtesting software other than a good charting program and historical data. Simply studying the charts and looking at the monthly change in prices between expirations and the ranges gives you a good understanding of how much the market can move on a % term and what a really bad move would look like. THis gives you a better feel for month to month fluctuations and how big and small they can be. AN option pricing calculator can be used to stress test it with changes in the underlying index and even IV and time to expiration.




     
    #3335     Jan 19, 2006
  6. hey you think on exp thur THEY care abt your oootm feb?:D
     
    #3336     Jan 19, 2006
  7. ryank

    ryank

    :D I just can't stop laughing! That is hilarious! :D

    ryan
     
    #3337     Jan 19, 2006
  8. piccon

    piccon

    Coach,

    I am protected by 20 points in both PUT and Call Spreads but I didn't want to leave my money and have bad dream tonight. I would like to let it expire worthless but I don't know about this SET story.

    I am 1260 and 1305 shorts. I don't think SET could be that big but in the other hand I want to sleep well.

    Anybody has a thought ?

     
    #3338     Jan 19, 2006
  9. #3339     Jan 19, 2006
  10. IF the set is that big...we are in big trouble BIG time...I'm not at home but don't recall off hand the largest set change but I believe it was in the teens....If I had your strikes I would take a tylenol pm and sleep fine:p
     
    #3340     Jan 19, 2006