I'm a huge fan of spreads (mostly debit spreads, but some credit
spreads). However, I pretty much had to stop using them in client
accounts. One reason is that they are difficult to size correctly
unless account size is large (with the relatively large average PPS
these days). Also, when market crashes (happens regularly with the
Fed juicing everything these days), it is very difficult to explain
that the exploding vol is making the account look much worse than
it really is (unless forced to liquidate before expiry). I
definitely still use them in my personal accounts. Almost
exclusively.
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I'm a huge fan of
I know I am the odd man out on here ...
Posted by jtsurfah on 7th of Jul 2020 at 02:33 pm
I'm a huge fan of spreads (mostly debit spreads, but some credit spreads). However, I pretty much had to stop using them in client accounts. One reason is that they are difficult to size correctly unless account size is large (with the relatively large average PPS these days). Also, when market crashes (happens regularly with the Fed juicing everything these days), it is very difficult to explain that the exploding vol is making the account look much worse than it really is (unless forced to liquidate before expiry). I definitely still use them in my personal accounts. Almost exclusively.