Posted by sschulman on 7th of Dec 2016 at 12:05 am
Jroger I almost only trade ES options. and sometimes rarely an
ES future.
I sell out-of-money call and buy a further-out-of-money
nearer-term call to hedge. So you could call it diagonal calendar
credit spreads. Are your vertical spreads credit or debit? Years
ago I did verticals but kept losing but in retrospect my strikes
were way to close to where the futures were.
I'm sort of trading the spy system by selling out-of-money ES
puts when spy system is long.
Interesting, do you mostly expect to close out the position at
or before hedge expires? I look trades for a modest debit
position where they spread is reasonably likely and the return is
about three times the cost. I do this when I am betting on
the move and want to limit my exposure to the entry price if I am
wrong. I am tuning my selection criteria.
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Jroger I almost only trade
Vertical Spread Options: I am creating vertical spread call and put ...
Posted by sschulman on 7th of Dec 2016 at 12:05 am
Jroger I almost only trade ES options. and sometimes rarely an ES future.
I sell out-of-money call and buy a further-out-of-money nearer-term call to hedge. So you could call it diagonal calendar credit spreads. Are your vertical spreads credit or debit? Years ago I did verticals but kept losing but in retrospect my strikes were way to close to where the futures were.
I'm sort of trading the spy system by selling out-of-money ES puts when spy system is long.
Interesting, do you mostly expect
Posted by jroger on 7th of Dec 2016 at 06:14 pm
Interesting, do you mostly expect to close out the position at or before hedge expires? I look trades for a modest debit position where they spread is reasonably likely and the return is about three times the cost. I do this when I am betting on the move and want to limit my exposure to the entry price if I am wrong. I am tuning my selection criteria.