Recent content by FitForLife

You need a trading plan with good risk management strategies to consiatanty win with otpion trades. Once I became a net seller of options my winnng % improved significantly. I believe that the majority of options expire worthless every month so I only want to be a seller. I just completed my...

After reading the first 1500 messages I have been having great success with simple net credit spreads on the SPX, NDX and RUT indexes. I have moved my IRA accounts to my brokerage account and continue to add funds and invest all my credits. I had to close my first Bear Call SPX spreads in Oct...

I had my 1300/1310 Bull Put SPX Spread filled this week for .25 cents which is a 2.6% return. Now I will wait to complete a Bear Call SPX Spread next week for another 25 cents so that I earn 5% on this IC trade. I like earning 2%-3% per spread trade and then 4%-5% per IC trade when I can.

What is 2 sigma? I have a new respect for Coach's FOTM credit spreads and am considering doing similar trades (ie 2 sigma) later. I figure, even if I can do 3-4% a month, that's sounding great at this point.

I am a bit confused. OX margins on vertical net credit spread trades on the SPX Index equal $100 per share. Each point difference is $100 so with a 10 point difference my margin is $1,000. If this 10 point spread is ITM at expiration and is exercised by OX will I be charged $250 a point or...

I am averaging 5% monthly returns so far this year with monthly return averaging 3% and 8% just trading FOTM Put and Call Net Credit Spreads on the SPX Index. I have read books, paper traded for 6 months and now use trading tools to help me choose strike prices. Is their any reason I should...

I am considering opening a trading account with IB to reduce my trading expenses. The only trades I will execute are FOTM net credit spreads on the SPX, RUT, OEX and NDX index's. I have a few questions to this broad before I apply for an account: 1- Doe's IB have an order entry screen like...

When I first started buying and selling calls and puts I had wild swings in my monthly performance. Some months I did well and other months I lost. Then I read a few books on selling credit spreads on indexes in 2004 and swithched to this trading strategy exclusively. So far in 2006 all my...

If you really want a sure winner execute an IC trade on the SPX index. This index does not experience the wild swings an individual stock can make in a month. If you study the monthly starts and finishes of the SPX index you will see what I mean. Just be conservative and execute FOTM spread...

1. If you never traded options, do you still think you'd be where you are today (just as profitable / unprofitable)? No. I started having consitent monthly profits when I started selling otions that would expire. 2. What is your primary option strategy?...to speculate or to hedge? For...

I have an account at OX and have done exceptionally well these past 4 months with my Credit Spread trades on the SPX index. I am now considering setting up an account with IB so I can reduce my costs, i.e. .75 cents per contact is cheap. For those using IB for Credit Spread trades can you...

I started trading in January 06 and all my put and call credit spreads and IC's have expired worthless. No adjustments needed which is a good thing because I have never done one before. I am using retirement assets so my net credits are small and FOTM strikes conservative. I usually sell all my...

Following is a response I received directly from IB yesterday: Dear Trader, Please see the following link which describes IB's margin requirements for various option positions. http://www.interactivebrokers.com/en/trading/marginRequirements/stockIndexOptions.php?ib_entity=llc...

Thanks for the heads up on the TOS charges for 1 contract. $5.90 is very reasonable for a 4 legged IC trade and one contract. An its is only $2.95 for a credit spread and one contract. $5.90 is only 10% of the cost ($59.80) I have been paying OX for the IC trades I did in Feb and March...

I have learned so much from this thread and Coach's book. I setup my " "training" trading account at OX ($15K) and entered credit spreads and many IC's during Feb and Mar and every one expired worthless. I did not have to close or adust any position but I was ready to do so if the SPX was...