SPX Credit Spread Trader

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

  1. It is in a diagonal so I am long some more JULY calls. If the market rallies back to 1300 I have many ways to roll up the short strike and increase the contracts or roll into other positions. So in this type of strtegy I am not as concerned with the short strikes as I am in a vertical credit spread.

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    #6821     May 19, 2006
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    #6822     May 19, 2006
  3. Wow, SPX drops another 5-points and still no fill on the 1235/1240 P. Now it's a bit close for me right now. Took my order off the table. I've gotta take a minute too look things over.
     
    #6823     May 19, 2006
  4. Crucis

    Crucis

    Just got an alert that SPX just hit 1258 and continues down. Where did you think the bottom was? 1250? :eek:
     
    #6824     May 19, 2006
  5. rdemyan

    rdemyan

    Coach:

    I want to start looking at diagonals more seriously. So I'm trying to implement the trade you posted in ToS paper money so I can follow along and learn without risking any money. Did you really get $3.60 for the June 1310? The mid right now is $2.90.

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    #6825     May 19, 2006
  6. Diagonals, time flies, whatever... are what y'all should be trading. Rolling into positions from 6 weeks, until you're at full allocation with 4 weeks out. Scalping against your delta position is actually a tenable position close to expiration, unlike these penny-verticals. JMHO.


    innit?
     
    #6826     May 19, 2006
  7. I was filled at 10:57 AM and $3.60 was a good fill on the 1310. Are you sure about $2.90? Right now I am seeing $3.20/$4.00.

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    #6827     May 19, 2006
  8. rdemyan

    rdemyan

    Yeah, you're right. When I was fooling around with the paper money section the SPX went from around + 2 to -4 and I didn't notice it. The paper trade area is confusing because it's not setup the way my "real money" area is. I guess I better take care of that first.

    Just found out from ToS that there is no way to do uneven quantities for the diagonal in one trade. I'd have to leg in.

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    #6828     May 19, 2006
  9. I legged in too. I go aggressive on the long side first and when filled I grab the shorts.
     
    #6829     May 19, 2006
  10. ryank

    ryank

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    I think Sailing said you have to send it to the order desk if you don't want to risk the leg in.
     
    #6830     May 19, 2006