On a different note... Jessica Alba is on MSNBC.com Headlines http://www.msnbc.msn.com/id/11093935/ I thought I would help the coach unwind for the evening SS
Its ok, I already told my wife that Jessica Alba would be my ideal girlfriend as well so that article is finally saying what I believed all along LOL. You know the deal where you tell your wife who the one woman you would leave her for and she does not care since the odds or .0000000000000%. Man, that picture of her is stunning. JA is the offical mascot of this thread . Whew....oxygen....
I am trying to figure out how selling credit spreads on SPX equity index options is different from selling credit spreads on SP future. Being an absolute novice in the options on futures information, I am using the Summa Lubow books for material apart from looking into simulated trading on Man. The biggest difference I can find is in the margin/bidask spread etc. Feel free to tell me where I am going wrong in thinking options on the future looks more profitable and why this is not a good idea. It looks like I am missing pieces here I would rather get flamed here than loose money for lack of info. hehe cheers SS
Perhaps if you describe why you feel selling the SP options futures are more profitable we can follow your thinking. Hard to tell you if your thinking is wrong if we do not know what you are thinking lol. Options on futures do have SPAN margin which certainly is better than Reg T. I am not sure of the bid/ask spreads since I have not followed them lately. Best way to compare is to take same strikes on both and compare a like spread with margin required and premium received. Main difference for most on this thread is that they do not have access to SP options on futures through the average retail broker. Even IB I think only has ES options which are electronically traded (been a while since I checked so correct me if I am wrong). So please feel free to share what you have found and where you trade the SP.
Hi All Has anyone experienced first hand an adjustment on their OTM credit spreads using the PREGO FLY (other than the coach) ? If so what was the wash up ? SteveJ
Well I have not used it yet because I have not had a cause to use it yet. The idea is to only put it on when the market is moving against you strongly and you expect the move to continue. So instead of adjusting the spread lower, you convert it to a Prego Fly so that your risk is drastically reduced and if the market keeps moving against you, you actually have a chance for significant profits. An example of when I might have used it was after Katrina in Sept when the market dipped down to 1168 and I had to adjust lower and almost had to adjust again. Fortunately at the time, the market rebounded enough to make another adjustment unnecessary.