SPY
nedeľa 30. júna 2013
System - rules
I will start my trading with writing credit option spread on SPY. For each written spread, I will get premium. I will sell nearest put or call option and buy put or call option with 2$ difference as insurance in one combo order.
For my trading I have chosen broker Internative Brokers.
When you are younger as 26 years you can open account with 3000 USD or equivalent. After 26 year you need 10k $ to open account.
I decided to start my test account with 3000 Eur, which is 3900 $.
I will use on trading only 70% of this deposit and the rest 30% for rollover. Also I will create 2 accounts. First with 2700$ and second account with rest 1200$.
For one option spread I will risk 10% of capital on one day. One SPY option spread with 2$ difference requires 2$x100 = 200$ of margin, that will be blocked by broker.
So I will open only one spread per day.
Commision for each spread are 2-3$, but we will count with 2$.
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