Best Thread Spreads Trading

[abi1818]

What place did you join?

Didn't they teach you anything?

No, they just sat us in front of a simulation and told us to start feeling the market?

 

[stusse]

No, they just sat us in front of a simulation and told us to start feeling the market?

are you gonna trade spreads?

 

[KillPhil08]

Yo GARY!

 

[arabianights]

Looks like gary to me too

 

[LeMillionnaire]

Hi all,
Here my first post.
I'm doing spread trading until some months now and I always close my position before spread expire to lock my profit. But now, I have some bear put spread deep in the money so I want to keep it until expiration.
My question is, how I doing that? Did I need to exercise the option I have bought (the third friday of the month) and wait that my short position was exercising by the person that buy it? Or all is automatic and my broker do every thing at the exipration of the spread?
I'm using optionsXpress.

thanks

 

[drewfus31]

Hi all,
Here my first post.
I'm doing spread trading until some months now and I always close my position before spread expire to lock my profit. But now, I have some bear put spread deep in the money so I want to keep it until expiration.
My question is, how I doing that? Did I need to exercise the option I have bought (the third friday of the month) and wait that my short position was exercising by the person that buy it? Or all is automatic and my broker do every thing at the exipration of the spread?
I'm using optionsXpress.

thanks

Specifics on the option?

Different exchanges/markets have different exercising and assignment...

"i have some bear put spread deep in the money"

If this were Corn, for example you will be assigned a short position for the Higher strike price, then off-set at the lower strike price.

You of course get hit for a commission on each assignment, so it would behoove you to liquidate the 'deep in the money' put spread and go ahead and give the arbitrageurs their couple of ticks for letting you out...

Again, without specifics, a bit of a challenging question to answer.


Drewfus

 

[LeMillionnaire]

Specifics on the option?

Different exchanges/markets have different exercising and assignment...

"i have some bear put spread deep in the money"

If this were Corn, for example you will be assigned a short position for the Higher strike price, then off-set at the lower strike price.

You of course get hit for a commission on each assignment, so it would behoove you to liquidate the 'deep in the money' put spread and go ahead and give the arbitrageurs their couple of ticks for letting you out...

Again, without specifics, a bit of a challenging question to answer.


Drewfus

One exemple is:
Bear put spread on USO (at New-York exchange)
I buy put option Dec 08 at 50 strike price.
I sold put option Dec08 at 44 strike price.

when i doing it USO was at 50$ and now it is at 36$.

So, what I can do (if I well understand) is to exercise the option I bought at close of market december 19 and wait to be assigned to the option I sold (to a maximum profit) or liquidate my spread by solding put option Dec 08 at 50 and buying put option Dec08 at 44 before december 19 (what I usually do).

thanks

 

[Age0511]

Hi

I know people that trade the Gilt-Bund, T-Note-Bund, FTSE-Stoxx, Cac-Stoxx. I just wanted to know if people here do any of these and if so what sort of techniques they use.

Any info much appreciated.

 

[-oo0(GoldTrader)]

Position Sizing

[FONT=&quot]

when trading spreads it is also important to figure out what percentage of the your account you want to commit to a spread.

I have given you enough time to think about this. There is no need to complicate this very simple matter. If you are trading with your own capital you can do anything that you want. Taking profits at any time is OK. This has nothing to do with taking the next good trade. If you have the funds, and you have a good entry, take it.

with the margin not necessarily, or should I say hopefully, not being 100% of committed capital.

If you are starting out you should be trading low-risk calendar spreads. The margins should be less than a thousand a spread, with your stops closer than that. If you keep about a $1,000.00 per spread you can enter the spreads. When you have profits on one you can enter another.

Then, I'd say that the best measure is return on the portion of the capital committed to the trade.

Capital changes day to day. Rom is an objective measure that anyone can use to measure the gains on a spread win.

Account size 100.000, divided into 10 portions of 10.000 each.

This is pure baloney. You can start with a small amount of original capital. Before a spread is complete it spins off unrealized profits than can be used as margins for additional spreads. These can be in the same commodities or something else. All of these gains can be earned without committing any new original capital to the trades.
[FONT=&quot]Why would anyone with a hundred thousand dollars risk it trading in something that they do not know anything about. Where did they get the funds in the first place. We only need to make $300.00 a spread to get the the returns that you will accept.

This means you can do 10 different spreads at a time.

Sure you can trade ten spreads as long as you have enough margin, capital to cover your drawdown’s, plus slippage. If we traded the same ten spreads with only $10,000.00 we would have ten times the gains as this lame less 7% solution Tharp has you seeking.

Required margin of a spread is 500, but you're willing to let the trade go 1.000 against you before stopping it (stoploss).

Depends on your stop. It is hard to imagine Parabolic trailing that far away.

You don't want to risk more than 5% of the total account size on any trade.

Why not??

It’s your own money, you can do anything that you want with it. Give me a reason why anyone would leave 95% of there capital doing nothing, for no reason?

Why not run double margins and commit 100%?

so 5.000 is max risk.

Why risk so much?[/FONT]

[FONT=&quot]$5,000.00 Capital will let you run five spreads.

The thing with looking at Return on Margin is that, while the number itself looks absolutely stunning, sometimes the margin can be very misleading as to the risk of the position.

When you trade spreads the exchange is really taking you at your word. They are financial partners on your trade. The amount that they ask you to put up includes what they in their wisdom assume is the risk.

This whole thing relates to portfolio theory

As a rough guide line if you have about $1,000.00 behind low-risk, low-margin calendar spreads at the time that you put them on. You should have enough. [/FONT]We have to trade spreads as the come available. When you work up to three uncorrelated spreads, the diversification should keep your drawdowns manageable. The best spreads are picked up near the seasonal lows. After about a week they should not threaten your entry point as the seasonal picks up momentum. Gains from these can be used for more spreads as their seasonal windows open.[/FONT]

 

[-oo0(GoldTrader)]

The programmers have never traded spreads.

hmm.. interesting post.. I wondered if anyone could shed more light on the timescales for various spreads

Paulds, in general a seasonal pattern will run the greater part of a year. There is no reason that markets should equalize on any one-day. But every reason why they should adjust every year at about the same time. The low-risk high profit spreads we use computers to isolate, are for the most likely periods these adjustments will occur. Because of the expiring nature of the contracts that we use, often one side at a time, of a spread will need to be rolled into different contracts.

Each of these can be viewed as new spreads, pyramids to the originals, or just a set of spreads needed to cover a seasonal tendency. Everything is connected to weather. When to plant, when to harvest, when to feed, and when to slaughter.

... is it a feasible and widely held notion that one can Scalp the spreads intraday or it this simply not the mechanism or timescale to consider such options with spreads...?

Spreads are simultaneous transactions. This means that they take place at the same time. How are you going to get simultaneous trades during a session?

What ever it is will need massive liquidity, which most commodities just do not have. We trade spreads on only one quote a day. The settlement price.

Also, I am surprised that with all the information that the Exchanges supply regarding spreads and margins on those spreads

It is to the exchanges credit that they make the seasonal research that they pay for, available to the public for a nominal fee.

that here is not any decent information regarding suitable calculation and mathematical tools to manage the spread once applied

Spreads take a little more training, which I am afraid brokers, just do not take the time to understand. Don’t they see we pay double commissions?

The programmers have never traded spreads. The results suggest that their bosses do not have a clue either. If they do not have any experience, how can we expect software that solves our problems. There was a group of traders T.A.G. that hired programmers to write a user-based platform. The newer stuff appears to be profit based. Simple things that would be nice for the experienced traders have been left out completely.

one could enter a spread and realize that the spread is working in the opposite direction, if that being the case I would presume that one could simply short the spread instrument once it is created

On simple spreads, we always chart the long side first. If you think it is going the wrong way switch the data around. On a spread chart we are looking for the spread to go up.

this is what I mean by the "secrecy" in the markets regarding these spreads and management thereof..

Ignorance is more like it. The rewards are there for returning traders.

 

[-oo0(GoldTrader)]

Puts and Calls

[FONT=&quot] You are trading puts and call options.

I'm doing spread trading ... But now, I have some bear put spread ...Did I need to exercise the option

Trading a spread between puts and calls, is not the same as trading the spread between two futures contracts.[/FONT]

 

[steve1966]

Seasonal Spread Charts

Seasonal Spread Charts and be found here - seasonalfuturescharts.com

 

[Jolie]

Hi there

My knowledge says Spread Trading is a unique trading style that's easier, has less risk and higher profits.

Cheers

 

[Correnna]

SeasonalFuturesCharts.com have excellent spread charts!

 

[Correnna]

SeasonalFuturesCharts.com have excellent spread charts!

 

[JDTRADER]

http://www.trade2win.com/boards/spread-betting/74180-new-spreadbetting.html

 

[markfric]

www.SpreadsFm.com is a new service for spreads & seasonalities charting.
Except charting, it allows you to post your trades and watch them from potential to closed trades.

It is free, and still in Beta, you are welcome to try it.

 

[trubtraultysy]

Какой серой и

Ещё совсем недавно я ещё раз понял, что жизнь без нежданчиков и внезапных сюрпризов совсем скучна. Хотя, я полагал, что аренда жилья на вряд ли сможет подготовить мне подобных неожиданностей. Немного расскажу о подробностях.

Мой хороший знакомый как-то позвал меня в Москву на заработки. Оставил мне рабочее место. Вопрос относительно того, где же мне лучше будет снять квартиру, потревожил меня раньше других. Слышал ни раз, чтоб аренда квартир в москве не вызвала неприятных последствий, относиться к ней нужно с особой серьёзностью. Недостаточно я знал, как выяснилось. Я остановился на варианте снимать квартиру, пользуясь обычным объявлением. Все важные детали мы обсудили с владелицей квартиры по телефону. Было сказано, что тут же будет заключён договор аренды квартиры. Будучи полностью уверенным в верности решения, я погнал.

Добрался до столицы благополучно. Встретить меня у хозяйки не получилось. Про это она сообщила мне по телефону. Но при этом говорила, что ключи оставила у своей соседке. Я понимал, что в жизни всякое случается. И если человек пообещал, но не смог подойти, то на это должно быть веское основание. Я приехал по адресу арендованной квартиры. Тут всё было без обмана - в соседней квартире меня встретили и передали мне ключи. Я вообще-то, и не злился. В общем, вошёл, разобрал вещи, сходил в душ, уселся смотреть телик. В дверь позвонили. Иду, открываю, за дверью девушка. Очень привлекательная, кстати. В чём дело и что нужно - первое, что приходит в голову. На что она мне заявляет, что приехала по адресу арендованной ею квартиры. Удивлённый взгляд обоих. Если бы она была мужиком - дал бы по морде. А поскольку это не так, то пустить её в квартиру - было последним, что мне оставалось поделать. Аренда жилья - стала исключительно единственной темой всего нашего общего разговора. А у хозяйки словно специально был отключен телефон. Если бы естественно не мои личные принципы по отношению к моей жене и семье, то аренда элитных квартир была бы не единственной темой нашего с ней общения. Красоты и блеска ей хватало с избытком, поэтому сдерживал себя я с трудом.

Внимательность - это определённый залог собственного благополучия. Именно такой я подвёл итог после этого случая. Аренда квартир цены на которую меня теперь интересуют менее всего, теперь делается мною исключительно через фирмы и компании.

 

[richardserrano]

Hello guys,
i am posting my trading plan and i would really appreciate your comments and analysis of it , this works 70% of the time however it is missing something and I would like to make it perfect. with your help

Trading Plan
First I look out for patters of over bought or over sold conditions the example that i am going to give you is an overbought condition.
Second I wait for the stockastic crossover diversion into an overbought condition.
Thirdly I wait for the macd crossover going into a diversion, a histogram diversion or double head.
Fourthly if the moving average is going to cross over I wait until the crossover has finished then I set up my fibonacci, wait until the price breaks the resistance level then wait for a signal like a shooting star or a doji, then short and set my fibonacci again. i get out at 38.2% or if the market is very week at 50%. Obviously this works perfectly if you can short right at the top.
My question is does anyone know of an indicator which lets me know how high the price can go. I am not sure this type of indicator exists.
i would love to paste the chart but i dont know how to do it in link in pls contact me if you want, i will send and email to you with the charts attached
i hope that your trading plans are going well.
RICHARD

 

[-oo0(GoldTrader)]

Re: FAQ: Spreads Trading Books

Trading Spreads and Seasonals by Joe Ross is the only book that teaches traders how to use close only spread charts. Joe covers how to use oscillators and chart patterns on spreads. ~ spreads

Seasonality: Systems, Strategies, and Signals by Jake Bernstein ~ trading spreads is pretty much a seasonal thing. Jake being one of the originators and inspiration to Steve Moore, everything he writes is in some way related to spreads. ~ seasonals

The Complete Guide to Spread Trading by Keith Schap ~ spreads

The Encyclopedia of Commodity and Financial Spreads by Steve Moore ~ spreads

Futures Spread Trading: The Complete Guide by Courtney Smith ~ traditional fundamental stuff, not much help in trading. ~ spreads

A Complete Guide to the Futures Markets: Fundamental Analysis, Technical Analysis, Trading, Spreads, and Options by Jack D. Schwage ~ spreads

Advanced Commodity Spread Trading by Harold Goldberg ~ spreads

Fortune Building Commodity Spreads by Thomas Kallard ~ spreads

Sure Thing Commodity Trading: How Seasonal Factors Influence Commodity Prices by Larry Williams ~ seasonals

Spread Trading: Low-Risk Strategies for Profiting from Market Relationships by Howard Abell ~ spreads

The I Ching by Richard Wilhelm ~ cycles

Books like New Concepts in Technical Trading Systems by J. Welles Wilder are really necessary if a trader is going to use oscillators on spread charts, but the book like Darves book on the box break out, are not specifically about spreads. But with little modification they are about spread trading.

The way we play it, Reminiscences of a Stock Operator Illustrated by Jesse LIvermore, especially chapter five is the key to a winning game. Email me and I will send you chapter five. Reminiscences of a Stock Operator, the complete book, is a must read. It is the game explained in its elemental form by a master trader.