SPX Credit Spread Trader

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

  1. That sounds like Austin Powers speaking lol.....

    P.S. By the way, all attempts to have the baby named Austin Powers _____ if it is a boy are being thwarted by my wife :(

     
    #7921     Jun 20, 2006

  2. I am a big fan of counter trend trading. to an outsider it might appear i am trying to catch falling knives or short tops but when all is said and done these entries are much better for the type of trading that i do. Looking back at all my losers through the years, i can honestly say that 95% of my trades can be closed close to breakeven if my directional/vega expectations change while in the position. Another way to reduce the theoretical average loss of such system is to roll up/out and increase size instead of a simple offset but the success there is debatable especially in a high iv market.
     
    #7922     Jun 20, 2006
  3. nravo

    nravo

    Are ER2 options eletronically traded? (I use IB) How is the liquidity, sprad, etc?

    Same questions for RMN, and that index options not futues options, right. Always prefered FO for the margin.
     
    #7923     Jun 20, 2006
  4. Sailing

    Sailing

    Besides IB, does anyone use or know of a discount broker with competitive rates and good filles offering ES?

    M~


    Personally, I'm interested in trading through Vtrader using haircut margin.... but many of my group members are not interested in series 7 certification. Thanks.
     
    #7924     Jun 20, 2006
  5. Sailing

    Sailing

    Coach,

    By now you obviously see the huge advantage using HairCut marginl, especially in your current trade position.

    For what reasons then are you still trading Reg-T?

    Curious,

    M~
     
    #7925     Jun 20, 2006
  6. I suppose you meant ES options, there's plenty of brokers providing ES trading. Hell even ox has it.

    A friend of mine trades futures options through a tradestation account. Though those trades go off through another platform if i remember correctly. That's the only other discount retailer that i have heard of providing them.

    Maybe our Chief Information Officer can give you a more accurate assessment? Paging mo to the thread LOL
     
    #7926     Jun 20, 2006
  7. nravo

    nravo

    Coach,

    I have heard that SPX futures options offer better liquidity/spread than ES options (but SPX futures options do not trade eletronically.) If the account is large enough, and you don't mind placing orders the old fashioned way, doesn't SPX futures options make more sense than ES options, or any other electronically traded options on futures that exist?
     
    #7927     Jun 20, 2006
  8. Prevail

    Prevail Guest

    phil, if sp hits 1200 the vix/vxo could easily increase 50 percent, I would say closer to 75 percent is more likely, with vega exposure how do you handle this with your ratio spread?
     
    #7928     Jun 20, 2006
  9. rdemyan

    rdemyan

    I have zero experience with futures so maybe this is a stupid question. I see that Coach often posts that he would short futures in the event of a large, hard market drop.

    But, won't a lot of traders be trying to short SP (and derivatives thereof) futures? Whose going to be on the other side to buy?
     
    #7929     Jun 20, 2006
  10. This paging business actually works LOL.

    Yes, Tradestation uses RJO's MCD platform for trading ES options.

    The only other discount broker I know that might support ES options are Xpresstrade.com but I think they specialize in pit traded contracts. E-mini's might not even be supported at all.

    Besides, commissions were something like $10/contract + floor brokerage fees etc. Yikes!

    I know nothing of the following other possibilities:

    http://www.expressfutures.com/ (possible commissions price match)
    http://www.arrowfutures.com/
    http://www.eminidirect.com/


    MoMoney.

     
    #7930     Jun 20, 2006