SPX Credit Spread Trader

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

  1. Completely agree!!!!! Great engineering.
     
    #4911     Apr 7, 2006
  2. I never realized what a filthy dirty pig I was until I ran the Dyson for 3 minutes.... had to stop and unload the canister LOL.

    Anyway, back to trading... have some position updates to let you in on shortly...
     
    #4912     Apr 7, 2006
  3. Nice cat, OC. Please rename this thread, "Hello Kitty" As you can see from the photo, cats come in by the truckload and are incinerated:

    [​IMG]
     
    #4913     Apr 7, 2006
  4. NEW MAY PUT SPREADS ADD/VIX HEDGE:


    MAY POSITIONS

    -400 SPX MAY 1215/1225 Put Spreads @ $0.35

    Credit = $14,000
    Risk = $386,000
    Return = 3.62%

    Long 100 VIX MAY 20.00 Calls @ $0.20
    Cost = $2,000


    APRIL POSITIONS

    SPX CALL DIAGONAL SPREAD (OPEN):

    - 8 SPX APR 1340 Calls @ $4.70
    + 10 SPX MAY 1375 Calls @ $3.10

    Net Credit = $660

    Unrealized profit of about $1,000 for now but gonna let it run and make more off of it if I can.



    SPX BULL PUT SPREAD (CLOSED):

    - 350 SPX APR 1225/1235 Put Spreads @ $0.35

    Net Credit = $12,250

    Closed for net credit of $0.15 or $5,250



    PUT SPREAD PARTIAL HEDGE (OPEN- and the reaons we are bullish lol):

    + 100 SPY APR 126/125 Put Spreads @ $0.10

    Net Debit = $1,000


    Search Word = COCONUT
     
    #4914     Apr 7, 2006
  5. i think this is what coach meant a few days ago when he told a newcomer that sometimes we get off topic :D

    Speaking of cats, whats a guy doing with a cat? Isnt that a girl thing? :D
     
    #4915     Apr 7, 2006
  6. LOL actually my sister-in-law's cat. Do not have a pic here of mine but will post one soon ;)

     
    #4916     Apr 7, 2006
  7. LOL, more like a condo thing... besides... uh... it is HER cat.. yeah...she got it.... all her idea....

     
    #4917     Apr 7, 2006
  8. or for that matter, whats a guy doing with a vacuum cleaner too? that must be HERS as well eh? :D
     
    #4918     Apr 7, 2006
  9. Dude.... this is the Porsche of vaccuum cleaners..... VERY manly :D

    I got 4" Plastic Rims, Clear Plastic Chasis to see the Vortex Engine, 5 Turbo-style attachments and it goes from off to suck in less than 1 second...


     
    #4919     Apr 7, 2006
  10. rdemyan

    rdemyan

    I'm just going to add one comment on the VIX hedging issue, which it seems to me is a good idea.

    I think the severity of future likely black swan events is being severely underestimated. If a coordinated effort sets off a number of dirty bombs across the U.S., I'm not convinced that the VIX will settle down a short time after the catastrophe. Why? Because business will not return to normal any time soon. Those areas will be uninhabitable for very long periods of time and hundreds of thousands to millions could be displaced. It would dwarf 9/11 in severity (as tragic as that was). While I agree that all we have is past data to look at to try and gauge future events, I think the potential future events dwarf past experience.

    This brings up another question. I'm not sure I understand what market makers do. I guess I simplistically thought that they were supposed to "make a market", i.e. facilitate trading between buyers and sellers. I also thought that they would at times buy contracts when there are more sellers than buyers (of course at a discount but still buying).

    Are they required to do anything to assist in "making a market" or is this just lip service for taking hefty premiums.

     
    #4920     Apr 7, 2006