I saw what I thought was a good credit on the Feb 1355/1365 call spread quoted at .35/.40 so I sent an order for .35 (at the bid so I should get filled right away). I was busy for a while and checked on it 20 minutes later and it wasn't filled, I couldn't figure it out. I opened up the quotes for the legs and found out why: 1355 0x.40 1365 .05x.40 I knew it was too good to be true! ryan
everyone does feel exposed...some more than others:eek: as momoney said coach is out today so you might want to bump your question when he gets back. I don't trade the oex however we did have a discussion which you might have read that a "good" IC will be beyond the straddle ATM (add both the atm put and call then the total of those pts is the distance of each short strike) coach goes much further some go out twice on the spx...don't think that would work for the oex. good trading to you
Trading through prop does not mean I become a market maker. I will stil have to trade you like you with direct access, just get better margin and haircuts.
Boxing your credit spread may simply lock in a loss of teh difference between the strikes minus the credit. Since the two positions are complementary I agree that the locked in loss of the spread could be the same loss as if you simply closed it at the same moment. Bottom line you can compare the two at the moment and find the least painless way to get out. A box is a better strategy to leg into for a profit, then to leg into to lock in a loss. This is all off the top of my head but i think it holds true.
Coach: I have been reading this thread for several months and want to thank you for all your input into the discussions. I would like to trade spreads but I need some basic education on performing technical analysis. Can you suggest a good basic book on the subject. Thanks again.
Murphy, Technical Analysis of the Financial Markets You could buy a lot of books but this one covers all the major TA tools and is enough to give you the best overview. Once you go through it and find certain indicators you really like, you can noarrow your research and focus. Glad you found use in our daily ramblings
The option chains look like the one I see on OX, wonder if they use the same software for that part. The trading screen isn't too bad and the option strategy scan looks interesting. Can't beat that price. It would be great to hear from somebody who trades with them. ryan
Quote from the webiste: "For option trades, we charge $4.95 per trade, plus 65 cents per contract. Thatâs it." They are not that cheap after all. The platfrom looks exactly like OX, only with different colors.