SPX Credit Spread Trader

Can you point me to a faster moving instrument for the same amount of risk? I'd be happy to find out what that is.

 

what was the net delta and gamma of your spread when you put it on?

 

i dont remember, but you can use current prices for your example.

 

For what it's worth, this is exactly why I only trade a maximum of 40% of my account using this strategy. If I need to defend a position, I want to be able to throw as much cash into my rolled position as is needed to stay positive.

If a .60 credit position goes against me and I end up shutting it down for a net debit of 1.80, it would take me 4 times the number of contracts on the roll-out to keep my initial credit (assuming I get the same credit amount on the roll).

 

When i hear things like these i hope you guys are using this strategy with aggressive money or MAD MONEY like cramer likes to say

 

It's all Mad Money!

But to clarify, things like what? The fact that I use 40 percent of my account, or that I am willing to adjust a position and stay positive?

 

Never mind, I finally found it after much digging.

ryan

 

i sent you a pm in your inbox 10 mins ago

 

Yes, the fact that after all adjustments are taken into consideration, your max risk is 40% of port. Pretty huge chunk for any money thats not mad money.

 

good job, this is the key to finding expectancy which will allow you to move closer to systemization.