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PM, you keep saying that as a Spread Trader in Indexes I am susceptible to a "total loss" ... I am very much protected from a significant or total loss. Also, just because I trade indexes, I am "NOT good at selecting specific stocks and prices" ... my goals and motivation drive my strategies...

I will give an example of how I trade.... Credit spreads.... YES. I am one of those uneducated, over-leveraged, JackAss Spread Traders. I focus on broad indexes.. RUT, NDX, SPX, etc. I do not go looking for "big" premiums, I look for good trades on these... good available premium with...

Put, I can't speak for all Sread Traders... I always have a plan "B" and work to limit my downside risk. You keep talking about massive or total loss... The maximum loss on any credit spread is the difference between the strike prices of the two options minus the net credit received. There is...

My point exactly... I know I want to work a low delta on my credit spreads.... Do not comletely understand the formula behind delt and other Greeks.... but I do learn from these exchanges on how greeks impact decisions.

Atticus, been reading many of your post and do very much respect your knowledge and how you interact with others here... I can't say that about everybody. Back in February, I could say I never even thought of trading an option.... In March, I didn't know what a spread was,,,, Maybe by this time...

I give up.... I will not try to defend my points... I am not as skilled as you guys... I play it conservative and I am doing well and will take the hit before I get into real trouble... Later

I give up.... I will not try to defend my points... I am not as skilled as you guys... I play it conservative and I am doing well and will take the hit before I get into real trouble... Later

"Do you honestly believe that the public retailer is looking at their delta position when writing credit spreads? They're using spreads to maximize the $credit". I just want to add a little here... I do use credit spreads... The first thing I look at is the delta position, not the size of the...

Interesting response.... I did participate, but can only participate with what I do and know... otherwise it is purely hypothetical... if it is purely hypothetical, why do you not play it out show us what your point is. I guess we can just move on....

Is this a put or a call? Call... NDX is at 2786 is this a credit or a debit? A credit (do not play with Debit spreads) Are you bullish or bearish? I am Neutral... I expect strong resistance at the 2800/2825 range. My spread assume the indexes stey with a range... and I make it a wide...

I will do this.... Today I place a spread on NDX 2950/2975.... Had $60 premium and $2400 maintenance on each contract. 2.5% for less than the month. The short strike had a delta of below 5 ... if delta goes above 16, I look at adjustment alternatives. Watch the progress regularly as...

Folks here appear to be very negative on OTM Credit Spreads... I agree they are risky as are all option strategies... Why are they more risky? I use credit spreads on a regular basis... have a strict criteria for selecting the Spreads I enter, monitor closely, and have an adjustment strategy to...

Folks, I am now exclusively using credit spreads.... looking at other strategies and using a "play" to test. I am focused on RUT and NDX and trade far OTM... delta of less then 5... no more then 45 days out. I do plan adjustment strategies if certain levels are met... Delta of 20ish...

Not sure of the "grouping" capabilities with tradeMonster, but OH does not have this to my satisfaction. All are grouped by expiration date and strike price... So if I have 5 RUT 880 Sept Calls in a credit spread, 5 of the same in a Calendar, and anther 5 in Double Diagonal... it will show 15...

Interesting remarks on OH.. many are negative. On several ocasions, I have noticed a change in my Account Value during the night... Their explanation was an alignment with their Clearing House... They indicated that they will be coming out with a undate to their system to correct this. On...

I have a 6 figure account for trading options, currently with OH as well. I provided TOS/TDAmeritrade with a copy of my statement justifying my option contract volumes... They did come off their listed fees, but not enough to make it worthwhile for me to make a move. I hear good things about...

This is me.... My history had been several ICs in a combination of RUT and NDX.... A hit to the market will impact all.... but at least I do not execute ICs on individual stocks..... I can say that after next week, I only have 15% in the market all in NDX ICs which expire in Sept. After...

A very good discussion from someone who is currently focused on those far OTM Credit Spreads... I have the experienced the pain of loss yet, although I have had some close calls. You are opening my eyes to more potential risk then I was considering. For that, I thank you.... Have not been...

I think I need to go to Option University.... Honestly, I never trader an option before March of this year. Read a few books... started with Covered Calls and Naked Puts as many do. This killed me... Premiums were good... Lost my shirt on the stocks/ETFs. Moved to Credit Spreads and...