Launched this new Double Calendar today
- Thread starter Steve G
- Start date
Steve G
Active member
Thanks Dave - that is my goal with my class.
I want students to see all of the considerations and what I am looking at and then they can make their own decisions based on how they feel about my assessments. I provide the same type of explanation on exits as well.
Here is a new trade I put on with the class today as well: https://www.loom.com/share/858ba8223a9e442db935c5b5349252e4
Filled at $.50 Credit and our new position looks like this:
Aeromir Corporation - SJG Trading - Butterflies
SJG Trading - Butterflies are how Steve Ganz trades butterflies to achieve his trading goals.
info.aeromir.com
DaveN
Member
Thanks, Steve! It looks good: a 60/50 Put BWB for a credit with some good "tent spread" to cover this downside move.
It's probably a subject from your class, and certainly a different thread, but I'm curious about your widths, both vertical and horizontal.
I generally prefer to look for that sweet spot, trading off width and contracts while keeping risk roughly constant. e.g. a 10 lot 10 point wide Vertical in SPX versus a 1 lot 100 point wide Vertical, or somewhere in between. These hit different points on the Vertical Skew curves which are not linear, so they trade a bit differently. My SPX BWB's have been 80/xx or even 90/xx in higher IV.
Similarly, for Horizontal Skew, it's interesting to see your work with 3-day Calendars. I like shorter ones, but I haven't traded that skinny, mostly 5-days and 7-days.
I'd love to hear any thoughts you have about widths, but I do understand if this is a proprietary part of your course.
It's probably a subject from your class, and certainly a different thread, but I'm curious about your widths, both vertical and horizontal.
I generally prefer to look for that sweet spot, trading off width and contracts while keeping risk roughly constant. e.g. a 10 lot 10 point wide Vertical in SPX versus a 1 lot 100 point wide Vertical, or somewhere in between. These hit different points on the Vertical Skew curves which are not linear, so they trade a bit differently. My SPX BWB's have been 80/xx or even 90/xx in higher IV.
Similarly, for Horizontal Skew, it's interesting to see your work with 3-day Calendars. I like shorter ones, but I haven't traded that skinny, mostly 5-days and 7-days.
I'd love to hear any thoughts you have about widths, but I do understand if this is a proprietary part of your course.
Steve G
Active member
Dave - as you already noticed and commented, for class purposes, I tend to stick to 50/50 and 50/60 in widths. I can't say there is a very specific reason for this other than it helps people to familiarize themselves with pricing in that range so that they can have a sense of a good/bad price over time. For class purposes rather than spreading wider in higher IV, I may add a number of fly's to keep my general sizing/margin consistent.
As far as the calendars go - I am still experimenting and don't have anything very conclusive there at this point - BUT, I have been using a product called Ninjaspread.com that has helped in finding the best potential calendars, so that has been interesting.
If you want to check it out:
Ninja Spread Youtube Videos: https://www.youtube.com/channel/UC-HH3ejy-Vg4N8sZEVSSlyg/videos
SJG10 is a coupon that gives a $10 discount for the first 3 months.
As far as the calendars go - I am still experimenting and don't have anything very conclusive there at this point - BUT, I have been using a product called Ninjaspread.com that has helped in finding the best potential calendars, so that has been interesting.
If you want to check it out:
Ninja Spread Youtube Videos: https://www.youtube.com/channel/UC-HH3ejy-Vg4N8sZEVSSlyg/videos
SJG10 is a coupon that gives a $10 discount for the first 3 months.
ChristopherM
New member
Thanks for Sharing Steve.
Steve G
Active member
This calendar is still alive and doing OK so far - I little pullback or even stabilization at these higher levels would do great things for it - while a continued, aggressive up move from here would be problematic.
I have an opinion that there is a better 50% chance that the 4,000 area might present some level of resistance/stalling in the SPX which is why I did not close this position just yet - but I will be looking to close (or at least dramatically thin it in the next couple of days - especially any pullback that would give it higher profitability:
Steve
Thank you.
If i was to enter a new calendar tomorrow would you suggest a single calendar around the 4000 strike with two weeks to expiration may be an interesting experiment?
Steve G
Active member
If you have not traded calendars before and are "experimenting" I would suggest a paper trade, OR if you are like me and just don't pay attention or treat a real-time or live paper trade the same as a live trade - maybe trade SPY instead of SPX to keep it very small.
As far as my strike choices, I have been relying on NinjaSpread.com to show me the best prices trades recently, so I am not sure exactly what strikes I would pick.
As far as my strike choices, I have been relying on NinjaSpread.com to show me the best prices trades recently, so I am not sure exactly what strikes I would pick.
How accurate is ninjapread ? are you able notice the difference between this trade and other trades ? Have you been succesful ijn getting the fills ?
Steve G
Active member
I would have to say the verdict is still out for me. I really like the product, but at least with SPX (and possibly stock options), the pricing is delayed by about 15 minutes. That said, when I am trading SPX strikes that are out 15m - 90 days, that really won't make a difference. The one thing I have found is that you have to make sure you specify that there is some level of volume on the strikes when you do your screening - otherwise it can show you some GREAT pricing that does not really exist because there may not be any actual real bids or asks at that price.
Overall - I have used and like where it points me, but I do still "SHOP" my orders at those locations - it is not an instant fill situation.
Use the code I shared to get a reduced-price trial and see what you think and share it back here with the group if you would.
SJG10 is a coupon that gives a $10 discount for the first 3 months.