SPX Credit Spread Trader

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

  1. You have more of an accounting nightmare than me becausae you are a larger group than me (2 people). IRAs I assume make it easier since you do not have to worry about the taxes lol.

    For VT your group will get a K-1 and then you will have to divide the P/L among the members based on their entitled %. So it is easy as well I think.

     
    #8721     Jul 20, 2006
  2. Thanks coach.
     
    #8722     Jul 20, 2006
  3. Murray, sorry haven't kept up with thread last couple of days. Apologies if this has been discussed:

    Benefits of MM haircut vs. SPAN for (naked) long options is something to look at.
     
    #8723     Jul 20, 2006
  4. Phil,

    Since you're trading both SPAN and Haircut risk based margin, if you had to choose between the two, which one and why?

    Murray


    Murray:

    For the ES I really do not check to see my SPAN v. Haircut margin. I just see the haircut and happily do not have to choose between the two becaue I get both lol. I think in many cases SPAN and the haircut might be close to each other unless the positions are lreally large and small differences add up.

    But my daily sheets just list my haircut so I just go off that :D
     
    #8724     Jul 20, 2006
  5. Very light volume on ES compared to SPX. Not really enjoying this legging in business. Legged in one side (but I think thats only because the market moved in favour of the other party).

    Now trying to leg in the other side and worried the market may run away making me pay more than I have to.

    Just an observation
     
    #8725     Jul 20, 2006
  6. mdshiao

    mdshiao

    I would like to open an IRA account at IB to trade ES spreads as coach did (long or short ES). But I heard that IRA account does not allow margin. Can someone verify that IB allows IRA account to trade ES spread?

    Thanks,
    mdshiao
     
    #8726     Jul 20, 2006
  7. What no free lunch?! :mad: Sue them!

    Hedge with ES if legging size and significant interval between completion.
     
    #8727     Jul 20, 2006
  8. #8728     Jul 20, 2006
  9. So that's only with significant size right? ie hedge the delta equivalent with ES? What if im trading 5 lots :D
     
    #8729     Jul 20, 2006
  10. Pick one side to get very aggressive with and shave off the bid or ask. As soon as you get filled grab the other side to lock in the spread, maybe only shaving one tick off that bid or ask so you can get filled quickly. I usually leg in rather fast since I am not trying to buy at the original bid and get too greedy. If the market starts moving after leg 1 is filled, I just grab the second leg at the bid or ask to make sure I get it. That is why I try and get really aggressive with the 1st leg so if I have to grab the seoncd in a rush I still will l ike the credit I get.

     
    #8730     Jul 20, 2006