SPX Credit Spread Trader

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

  1. Tried to close out the Condor and free up capital for July positions after some more swings. Had limit orders for both and only put side filled. Updates below:

    JUNE POSITIONS

    Sold 225 SPX JUN 1140/1160 Put Spreads @ $0.75
    CLOSED for $0.15 or net profit of $0.60 or $12,375 after commissions.

    OPEN: Sold 225 SPX JUN 1330/1350 Call Spreads @ $0.15



    + 200 SPY JUN $133 Calls @ $0.05 for $1,000
     
    #7351     Jun 3, 2006
  2. Maverick74

    Maverick74

    Can someone please explain to me how someone's identity can be completely erased from the archives of ET. This has never happened in the 4 years I have been on this site. DonnaV, once a very active poster on this thread and on ET seems to have completely vanished from this site. Search all you want in the archives, you will not find her. Her alias is not searchable nor listed as a member of this site.

    Even if she were banned, as hundreds of aliases have been, her posts would still be archived. And we all know that we cannot delete our own posts after a certain time interval. Am I the only person that finds this incredibly odd? It's as if she never existed. And we all know she was one of the more active posters on this thread.

    I tell you, this ranks pretty high up there on the conspiracy list now. Move over Roswell, NM. Put away the Kennedy assassination tapes. Stop looking for Jimmy Hoffa. I am now issuing a missing person's report for one DonnaV. Last seen on the SPX thread on ET. Let the search begin!
     
    #7352     Jun 3, 2006
  3. Well you've asked one of the few on this thread that is not a fan of hedging, but in regards to your question, I can think of a couple reasons.

    1) Given that the SPY puts are pretty much 1/10 the cost you have more versatility in deciding exactly how much of a hedge you want. This is valuable if you aren't trading a $1MM account.

    2) You'll generally get a better fill on SPY as you aren't fighting a huge b/a spread. But that fill might be completely negated by paying 10X the commissions.

    3) If you take riskarb's advice, he recommends hedging by way of a risk reversal. Doing this on SPY would be much less margin intensive.


    Like I said, I don't hedge just for the sake of hedging, so you might want to ask OC or others why they do it. Also you could ask Momoney to look back and find the discussion we had on it a while ago and post a link.
     
    #7353     Jun 3, 2006
  4. Crucis

    Crucis

    Coach, Mo, your thoughts?
     
    #7354     Jun 3, 2006
  5. Mav has to have an address to mail the disclosure docs. :p
     
    #7355     Jun 3, 2006
  6. Her name has disappeared but she has not. I think she felt she gave too much personal info out and decided to erase those traces and protect her secret identity as Catwoman. She is at the ToS seminar this weekend I think and should pop back again soon.


     
    #7356     Jun 3, 2006
  7. $445k risk and a 1% return! :eek: Phil, you should be earning $10-$20k at 1:1 risk on that book. BTW, nice job working the June positions earlier in the cycle.
     
    #7357     Jun 3, 2006
  8. I have leaned towards long SPY puts/calls for hedging because the b/a spreads have been tighter. I can get out of the SPY hedge with most of the profit and less slippage then I can with SPX. Most times I compare the two to see which is cheaper when I look at their equivalents but the b/a spread usually wins out on SPY.

    I will not say that you should only hedge with SPY v. SPX or even XSP, but SPY and XSP often have better spreads and fills. Not always so a SPX hedge can work. The point is to add some deltas to help partially finance an adjustment or reduce the loss if you are gonna close the position. these are not perfect or full hedges but put a dent in the armor at least.

     
    #7358     Jun 3, 2006
  9. Actually it is closer to 3% return in about 3 weeks :D. If the calls closed out it would have been even better since I flipped two sets of positions in May (ok so it bled to June 2 but still touching May). I am waiting for the next push back to 1250 to get back in for July on the put side about 100 points OTM ;).

    YTD return so far is about 10 - 12% depending on what average margin used I derive.


     
    #7359     Jun 3, 2006
  10. Referring to the call spread, July positions.
     
    #7360     Jun 3, 2006