SPX Credit Spread Trader

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

  1. I know this is old but OptionVue 5 has historical option data. They take a snapshot once an hour and you can go back in time and see what happened to your trade.
     
    #9731     Aug 29, 2006
  2. I have a completely ignorant question. I've always done stock options, never index options ... your patience is very much appreciated.

    I'm looking at b/a spreads on the SPX vs. ES. The move per tick on the ES appears to be $12.50 (50 (multiplier) * .25 (increment)). So with a 5 point spread, the maximum risk is $250 - premium, correct?

    On the SPX the increment is .1, the multiplier is 250, so each tick is worth $25, each point on the S&P is $250. A 5 point spread would put my max risk $1250 - premium, correct?

    I'm looking at a middle b/a spread on the ES of .20 and a b/a spread on the SPX = .15. Does the multiplier effect the premium collected on these options? I find it hard to believe I could potentially incur 5 times the loss opening an SPX spread over an ES spread for the same premium, so I have to be missing something very fundamental.
     
    #9732     Aug 29, 2006
  3. and I just got this e-mail that you can try in free for 30 days...Heather that might give you time to analyse your trade
     
    #9733     Aug 29, 2006
  4. Well, it is true. In your case you are looking at the SP500 futures options (SP) which have a multiplier of 250. The SPX index options have a multiplier of 100 and SP500 E-mini futures options (ES) have a multiplier of 50. So yes, based on which one you want to trade you multiply the multiplier by each point move to get your gain/loss and that is $1250, $500 and $250 for a 5 pointer on these contracts respectively.
     
    #9734     Aug 29, 2006
  5. rallymode,
    Much thanks for your reply.

    Ah yes, I was looking at the multiplier on the underlying, not the option. Thank you.

    So my credit on the ES spread would be .20 * 50 and on the SPX it would be .20 * 100. Phew!

     
    #9735     Aug 29, 2006
  6. Precisely. I was stuck on the old equity options multiplier where everything = 100.

    Thanks for making it exceptionally clear.

     
    #9736     Aug 29, 2006
  7. #9737     Aug 29, 2006
  8. I always finish her plate :)...

    Another two days and I can cash in on my ES/EW diagonal...

    Thanks Murray! I will post an update..
     
    #9738     Aug 29, 2006
  9. Thanks guys.I registered with optionetics but its not so good.I will try optionvue.








    RichardRimes


    Registered: Oct 2005
    Posts: 1214


    08-29-06 10:44 AM



    --------------------------------------------------------------------------------
    Quote from frisbeeca:

    I know this is old but OptionVue 5 has historical option data. They take a snapshot once an hour and you can go back in time and see what happened to your trade.
    --------------------------------------------------------------------------------



    and I just got this e-mail that you can try in free for 30 days...Heather that might give you time to analyse your trade
     
    #9739     Aug 29, 2006
  10. I have a question for all the Sept/Oct put diagonal guys....when do you guys make adjustments if any or how much further up does it have to go before any adjustments are made and what would those adjustments be?

    Are you guys still on pace for profit or not?
     
    #9740     Aug 29, 2006