Quantcast
  1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Es bs differences

Discussion in 'General Discussion' started by Xrwswr, May 9, 2018.

  1. Xrwswr

    Xrwswr New Member

    Someone trading es would talk about how to deal with es bs difference? Traders trade es dont realli be bother with the bs differences They talk abt adjustment like bs differenceis not a problem Say you sell a credit spread 2520/2500 for 0.5 and and want to roll to 2430/2410 Buy back the trade cost 1.75 and you would have lost 1.25 on buy back credit spread The bs difference is more double of the credit 0.5 How would traders who trade es do adjustments?
     
  2. status1

    status1 Well-Known Member

    What does "bs" stand for ?
    I think I know but I don't want to assume

    As far as the trade goes the math is correct you would lock in a loss of 1.25 but you would also get a small credit from the new trade 2430/2410
    Is this a real trade or just a random example ?
    I was just trying to imagine if this was a real trade why would anyone would roll down now as the prices are going up and why roll down that much unless this was some kind of panic situation ? Just curious
     
  3. Xrwswr

    Xrwswr New Member

    Real mkt crd The two trd wld hv 1 dollar crd but still there wld lost of 0.25 There are traders talking abt do rolls on es But the fact is those rolls cost alots
     
  4. status1

    status1 Well-Known Member

    It's somewhat difficult to understand what you are trying to say when you use a lot of abbreviations
    Perhaps if you take the time and slow down and spell out all the words that you are trying to say in an understandable manner maybe someone can help you out
    Otherwise it sounds to me like you are surprised that you pay more for something that went up in value
    Who are these traders that talk about rolling es ? I am sure they are not on this forum so I am not sure who is telling you this
     
    Harry likes this.
  5. Xrwswr

    Xrwswr New Member

    The tread is abt how difficult to do rolls on es due to the bs difference There are some traders on this forum talk about trade on es and do rolls and use far crd trades but the fact is if traders sell far crd trades those trades hv to hold to ex Do rolls on these far crd traders wld cost alot Es traders defence es costs?
     
  6. status1

    status1 Well-Known Member

    Where is this thread ?
    Do you have a link to it ?

    If they are doing put credit spreads and the market is going up or stays in a range you would not need to do any rolls at all
    You would only roll if the market is going down and you are near expiration and even then I would not necessarily roll down unless I have to but that's to protect from bigger losses so in that case of course you would have to pay for it That's not a way to make money
    I would rather roll out a week or a month for a small credit or place the credit spread at the lower level at the beginning so you are not forced to roll that way you keep all the premium and not have to roll
     

Share This Page