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We demo'd using next month and current month one strike down out-of-the-money puts. We sold an OTM Call.. and also did an example of a slightly ITM call. M~

HairCut Margin Presentation Many of our club members trade covered calls... why? I don't know... I guess some habit are hard to break. What we did last Monday in class was present a powerpoint presentation on using HairCut margin on Covered Calls. We then extended the position by...

Tim, Good Question: Not knowing which way the market will move.... is why. The original Double Diagonal has a big 'dip' in the middle, approximately halfway between the two near month short strikes. The severity of the dip is determined by the width of the short strikes and VEGA...

We've done a ton of analysis... the lastest using 'haircut magin' on the position. After studying this now for a week... day and night, it just isn't fair that Retail Margin traders have to compete with HairCut Margin traders..... it's like day and night. What's even more astounding... is...

VIP is correct... you need to recover your entire Debit position as it is what you paid for the entire position. Thanks

Correct, Let's assume the shorts will expire worthless... not matter what the market does. So, in reality, you're making money on the longs.... and they will increase in value when VEGA increases. You could think of it as selling a short term narrow strangle against a longer term...

Sorry.... re-read your post... you did mention DD. :)

Question: What analysis software are you using.... First, your Double Diagonal listed below does not appear to be just a put diagonal... it looks like a call and put... or a Double Diagonal. Second, since the diagonal is a play on VEGA, ie, you're long VEGA, your exit should be on...

Coach, Although we still have a bit of a cushion to the upside, we're requesting that you consider placing a hedge today.... This mornings VEGA spike was nicely accepted in our Diagonal Positions... but this mid-afternoon rally has erased it in a hurry. We usually don't ask for...

Prevail, After searching and talking to people over the weekend... it appears Delaware is the choice for financial LLCs. Do you have a contact I could reach for starting the procedure? thanks, Murray

Richard, SNAGIT, (for a small price), will allow you to screen capture scrolling webpages, video, pics, webcams, you name it....... http://www.softwarecasa.com/pprod/212401dd.htm A FREE easy to use screen dump which is very powerful and saves files in numerous formats is MWSnap...

Team E.T., Advice Appreciated... Looking to set up our capital management entitiy, KL Capital, LLC. Spoke with two different out-of-state attorneys , also a LLC representative from each state... Nevada, Delaware, & Florida, and a local attorney here in Michigan....about the...

Sorry for the mistake, Bought a Put Calendar for a $7.00 debit.... at 1325 strike M~

Patiently waiting for coach to place hedge position.... ie, anytime now Phil would be appreciated. M~

VEGA Believers, You gotta be a believer of VEGA depreciation after a day like today.... tremendous effect on the Double Diagonal. But not to worry... expiration is still three weeks off. M~ PS Placed a tent pole on the Double Diagonal, ie, sold a 1325 Put Calendar Oct/Nov on...

Anyone following the Kramer effect? Some studies show he has more daily influence than any major broker or combination of brokers out there.... M~

Where are we going..... ??? 1400? UBS says 1450?

Tyrant, Although Mo takes little credit for his contributions, most of us here appreciate his words of wisdom.... his insights and well versed responses have much deeper meaning than what one would first interpret. Take his advice to heart.... it is some of the best advice on this...

P.S. It only took six months..... to sell you on the call side. That's relatively quick compared to some of the people in our trading club.... at least you have an open mind and a will to learn. Some of them are so stubborn.... so difficult.... but that's what makes teaching them...

You see... as the call diagonal can "MORPH" into a butterfly.... the Put Diagonal side can "MORPH" into a butterfly... or even better, a reverse calendar. It's difficult to apply the reverse calendar play on the call side.. because typically, volatility spikes to the downside movement...