SPX Credit Spread Trader

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

  1. You bring up really good points...not only more directional trading but also day/weekly trading and in this volatile environment most likely not a good approach. I still need to babysit my 1245 put shorts and when the market can move so quickly...playing around with July while the June pot(puts) is close to boiling over is reckelss for sure:eek: If you do a Ft Lauderdale in the winter...I'm there...:D I'll skip the summer heat/humidity!
     
    #7411     Jun 5, 2006
  2. I still find it next to impossible to trade SPX. I entered a Jul, 10-point put spread early in the day, asking for a credit of 55 cents. Later, the natural market became 30 cents bid; 1.30 offered, and they still did NOT take my offer. Pretty unbelievable.

    Mark
     
    #7412     Jun 5, 2006
  3. nlslax

    nlslax

    Agreed... F'n ridiculous.
    Got filled FOTM but ~.25 from the mid.:mad:
    The further OTM, the worse the fill.

    C-bow has a lock on it and like the Naz and NYSE, they're not gonna change until forced to.
     
    #7413     Jun 5, 2006
  4. Yeah it certainly is an exercise in patience and smiling while getting screwed a tad.. :D


     
    #7414     Jun 5, 2006
  5. skanan

    skanan

    Coach,

    Congratulations. I learned a lot of trading from your posts more than any books I read. There is no books teaching option trading together with risk management like this trade. I wish you success in your full-time trading career.

    People said chaning career/jobs is a big stress in life as well as having a new child. I wish you manage both stress well also.

    -Nick

     
    #7415     Jun 5, 2006
  6. Great trade, I was going to do the same thing but as you can see from my journal trades, I opted to go a different route. The return on risk should be comparable in the end, but it will have taken me an extra week.
     
    #7416     Jun 5, 2006
  7. For those of you calculating one and two Sigma for June and July expiration on the SPX, I would be interested what number you are now applying for Vol and what results you are getting.

    Thanx

    Cody
     
    #7417     Jun 5, 2006
  8. Coach
    did you grab any SPX puts yet.I am looking at below 1150 but they are all in 25 points spreads.:confused:

    oh you are still in june positions,right.slipped my mind.
     
    #7418     Jun 6, 2006
  9. ryank

    ryank

    I'm just pulling this info from TOS at the moment:

    June
    1 sigma = 1224/1299
    2 sigma = 1190/1337

    July
    1 sigma = 1194/1335
    2 sigma = 1130/1409
    vol = 18.14%

    You can also do a rough calculation by taking the ATM strangle for 1 sigma, doubling it to get 2 sigma.
     
    #7419     Jun 6, 2006
  10. Crucis

    Crucis

    Is there a formula that could be used. I've seen a couple but nithing where you could just plug in some number and get the calculation. I'm not too good at square roots.
     
    #7420     Jun 6, 2006