>There are no "quotes" for speads, only taking a combination of quotes for the options themselves. It's called the natural bid/ask. I spoke with TOS about this. They indicated the natural bid/ask is indeed from different exchanges, and can only fill a spread from one exchange. However, they said that if a customer has a problem getting a fill, to call the trade desk and they will work with us.
Coach or Anyone: A newbie question. What RSI and/or Stochastic charting parameters do you normally use for indicating oversold/overbought conditions for credit spreads? I am using the charts that OX Java charts provides and their fast stochastic is set at (10,3,10). Is this ok or would other settings be more appropriate. Thanks for any help. Jim
burrben, Your price looks about right. The mid price i was quoted was around 3.10. VIX was around 13.65. So i probably would have been filled around 3.30. Might get some if vix stays low today.
With the SPX rising up above 1290 my rules call for me to close out my 1300/1310 Bearish Call Spread. The marketmakers were tough and I had to debit out for the ask before getting a fill. Updated original August Positions: 1300/1310 Bearish Call Spread for $1.00 1155/1165 Bullish Put Spread for $0.90 Total Credit = $1.90 1300/1310 Bearish Call Spread CLOSED for -$1.30 debit 1155/1165 Bullish Put Spread for $0.90 (to expire worthless) Total Net Credit August 2006 = $0.60, a 6% Return (not counting commissions) Sometimes you have to settle for 6% returns rather than 19% returns.
UPDATE CURRENT OPEN POSITION SUMMARY OF SPREADS: 1. SPX August Credit Spread LIMPING Iron Condor STO 300 AUG SPX 1125/1115 Put Spreads @ $0.50 Credit = $15,000 UPDATE Closed put spread for $0.05 and rolled up to 300 SPX 1210/1220 for $0.25. Thus an additional net credit of $0.20 or $6,000 STO 150 AUG SPX 1310/1320 Call SPreads @ $0.55 Credit = $8,250 Update Closed spread for $0.25 debit or profit of $0.30/$4,500. ----->Market pushing higher into expiration and data coming out every day I do not want to worry about SET tomorrow and Friday so I took my profit and got out the way NEW COMBINED CREDIT = $25,500 Return = 9.2% 2. ES/EW Call Ratio Diagonal Spread -----> Decided to grab whatever remaining premium that existed in the AUG 1330 ES calls and sold the 50 lot for an average price of .14 (did it in bunches). That brings in $350 and the new final profit is edited below Net Credit Profit = $3,100 3. ES Diagonal Put Spread Sold 20 AUG ES 1225 Puts @ 8.75 Bought 20 SEP ES 1200 Puts @ 11.00 Net Debit = 2.25 or $2,250 VIX = 14.57 --------> Still holding on as I see potential for downward movement into the end of the summer and into September. The AUG puts will expire worthless and the SEP might have some good profit potential if we get a strong move lower and VIX increase.
You can trade right up till close Friday PM if the market makers haven't gone home LOL. Gamma high = hard fills. http://www.cboe.com/micro/oex/specifications.aspx
Thanks, Mo. In trouble this month with bear calls; with XEO moving up. I was on vacation and did not monitor.............. Just rolled up. But, may need another roll up or out tomorrow.