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Coach, In order to pull of this great VEGA play to the downside, you'll need to sell BACK month options. Since I'm still in Reg-T margin.... do you know if IB will allows this with options on futures using SPAN? :)

[What's even better.. .... is the reverse VEGA play. Consider this... we get a huge VEGA spike sometime in Aug. The Put diagonal 1225/1200 is making money.... Short Aug 1225p = $6.00 Long Sept 1200p = $8.00 Buy back that expensive Aug 1225p for $6.... (this is when most...

FYI, Maverick from V-Trader IM'd me this: 20x20 Haircut Margin on SPX 25pt 1200p/1225p diagonal spread = 44K 20x20 Reg-T Marginon SPX 25pt. 1200p/1225p diagonal spread = 50K I would be interested to compare SPAN... to the above.

[In my above statement with Call Diagaon and VEGA.... it could be mis-interpreted. The OIH as it moves up also creates increased volatility... as does the SPX when it moves down. So, as his positions (Put Diagonal in the OIH) moves up... it is moving away from this position while at...

Well... I still consider myself a novice in the diagonal arena. Certainly six months of trading them doesn't account for much credibility. I like your positons though, I don't trade the OIH, really don't konw it's "personality", but your analysis is interesting. As far as closing out...

Coach, Would you mind sharing what your margin requirement is for your Put Diagonal above. I'd like to get a better handle on this as we move this type of margin. Thanks, M~

I've been more reluctant to place a credit spread on the call side, but this is the sixth month now for placing the Call Diagonal. Volatility on the call side is a rare event.... I wouldn't trade it that way... it's more of a small proft protector should the market move wildly up...

The book you'll learn the most from is the one you wrtie yourself. Just not much out there on Diagonals... a few ToS webinars, and an IB webinar that I know of. May I suggest a deep honest trading journal and paper trading. This would be Chapter One. M~

Coaches credit spreads are not volatiity oriented, except for the fact that he uses increased volatiity to purchase further out of the money positions. His spread strategy can be argued whether it's a DELTA or THETA position, but after trading these for two years now... it's alittle of both...

Coach, The Call Diagonal 1300/1325 is available for .30 debit also... Nice fill... we too have that spread on for Aug/Sept. :)

Scoobie, The past six months we placed these on ToS. Because the next months out are placed when the VIX is low... and at a Far-Out-of-The-Money strikes... it does take a bit of patience to fill. We like to choose strikes with multiples of 25... becasue that's where the large open...

You're welcome... just note the data is always delayed by one day. It would be great if others shared some of their sites of interest.

We're in the 'waiting for another opportunity mode' right now. Two weekds ago, when the VIX dropped to 14, we placed AUG/SEPT diagonals and some 1325/1315c Credit spreads... reason for trade was seasonality and geopolitical conerns. When the VIX spiked on Tuesday... we grabbed some...

Website Tidbit For those of you looking at Ivolatility.com for implied volatility charts.... you can click on the web-address in your address bar and change 'period=12' to whatever number of months you'd like to see up to 60 (5 years). This is a nice little feature we stumbled upon some...

Someone asked about Historical Options Prices.... The only FREE site I know of is: http://host.businessweek.com/businessweek/Historical_Quotes.html?Button=NEW+REQUEST&Symbol=WIB+AR Murray

Thanks... that will work just fine.

This depends on your market outlook and your personal risk tolerance. We look for opportunities rather than specific time frames. That is, enter when volatility is low, or relatively low, with your outlook that it will increase sometime between now and your expiration. This just allows VEGA...

Theoretical Options prices Website Needed? While facilitating this Mondays investment club meeting, I'm in need of a site which will pull option string quotes as well as theoretical values. (The University's firewall, where we meet, doesn't allow my regular account access for quotes)...

Just ask... people would be more than willing to unabbreviate.

Bob, Vega plays a large part of this position... and yes it can be powerful as it moves your direction or increases in VEGA. Try to figure what would have happened if the market moved and RUT closed at 690. According to my estimates.. you still would have made a small profit. This is...