SPX Credit Spread Trader

I had a feeling that wouldn't get past you. LOL

However, I'm partial to a more, shall we say, bodacious bod!

 

I agree that if your far enough OTM you will seldom have to adjust, and I looked into placing OTM trades at around 45 to 50 days to expiration with a 85% probability of success but with low volatility the credits aren't very good (risk/reward) not great, plus it ties up capital in margin for 45 days. Do you have a required amount of credit that you will accept with a 10 point spread? I like to see at least .50 for a 10pt spread.

 

I like the more curvy Selma Hyek type too, but you have to admit that JA is crazy hot!!!

 

I like to see >1.00 for a 10-point spread, but I am one of the more aggressive traders here.

 

Really it has less to do with the credit you take in, and more to do with your personal strategy.

 

rdemyan

The lot size I mentioned was hypothetical just stating that I'd increase my position to by half it's original size. If I had a lot size of 2 I'd increase to 3 if it hit my adjustment limit.

 

I typically look for around $0.50 myself.

 

Yeah, I think Rallymode is the only one here that positions himself closer to the underlying than I do.

 

Cache:

That's just for a spread, right, and not the IC? An IC would be > 2.00.

 

I've been trying to find a way to backtest this strategy, but can't seem to find anyone that has historical data on options going back more than 5 years. Anyone ever backtest this strategy.