I just found an interesting difference between my futures SP trading and spx -- while the premium on a 10 lot on the spx is similar to the single lot on the sp, there is a major difference in commission. It costs me $120 round turn for an ic on the spx in optionsxpress, the sp only costs me $40 in alaron.
Can you give an example trade on the SP and compare it to SPX? What are the spreads and premium on SP like?
Coach: What's your take on June positions? I don't think you have any yet, but are you trying to place any?
I have filed my 2004 and 2005 taxes using the 60/40 treatment on SPX options proceeds. I have confirmed this with an accountant who specializes in taxes for traders. If this isnt so then i guess i may be hearing from the IRS soon. On a side note, this market seems spooked to me. Dollar is up sharply, coms/oil down sharply, yet we cant even pull off a bounce off of oversold levels. This doesnt look good at all. I'd be cautious opening any short put positions here.
Rally...isn't the bottom of your channel around 1280? I read an interesting take by the person I follow on oscillators this am. She said the market as a whole has actually BEEN in a decline the past couple of months(breadth etc) and that the wash out was the indicies catching up. She says we should be oversold (short term) by next week. I have an order in for June 1370 calls for .45 but probably won't get filled. Will be trying to fill the long part of the call side this week.
gave up .10..filled for .55 I do expect volatility this week and some days that could be up...so legging into the call side seems reasonable.
I dont see a good entry until 1270 which is what i am waiting for. i am in no rush to open put spreads given the fact that i only go 20-25 points OTM. i've made some great gains the first half of this year, my goal now is to hold on to those or add slightly. So i will be skipping any questionable entires.
rdemyan, why enter a bear call spread after a huge selloff? Any particular reason you decided to open it today and not last wed after the fed said more hikes to come? I really am trying hard to understand some of the logic behind some of the entries i see posted but i keep coming up empty. These strategies that we all do already have -expectancy, why some people try to make that even worse is beyond me.
It's a fair question, but I can't give you a 100% logical answer based on technical analysis. The trade meets my credit requirements and the short is 65 points OTM. Now, to be clear, this is a trade that I put on using my own criteria. But for grins, let's look at a post you made on 5/12/06 regarding FOTM spreads. In that post you said the following: 1) The only thing I would trade is bear call spreads. 1) I would open front month spreads 4 - 5 weeks out. We are currently 31 days from expiration in June. 2) I would go 65 to 70 points OTM. My position today was 65+ points out when initially placed. 3) "try to get $0.5 or better on a 10 pointer". That would equate to about $0.75 or better on a 15 pointer (assuming equal ROM). I got $0.70. EDIT: It is true that this trade comes far from meeting one of your major criteria: "enter trades when the SPX is at/within 5-10 points of the 3-month high". Still the trade I placed meets or comes very close to meeting much of your criteria [except for that very important point 3)] for entering an FOTM spread (which I know you don't trade). But I placed this trade to meet my criteria and it was not based on what you posted. I expect the market to trade in a neutral range or down and also I'm not the biggest fan of using technical analysis only to open positions in today's trading world.
Piccon, Did you place any bull put's today? Could have probably got something decent in the 1270 to 1260's for a 3 day hold. I'm Still hanging tough on the 1280's....nice bounce at the end of the day