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No chance to get filled at the mid. I have placed this diagonal since Murray mentioned it, but still not filled. I guess Market makers are not interested in taking any Oct positions unless they get a very favorable price.

check with www.greencompany.com. They specialize in trader tax issues.

Let it expire.

Murray, With LLC, I think you can use the pass-thro tax like LP, so there should be no tax for the entity, unless special regulation applies to trading business. Check with your accoutant. This month I have experienced both vertical and diagonal. I like both. However I found diagonal is...

Murray, For double diagonal margin, do you require to have margin for both sides, or just one side?

I have a question regarding margin requirement. Currently I have 10 contracts of RUT Aug 650/640 Put spread, and so my current margin requirement is 10K. If I am going to open 10 contracts of RUT Sep 740/750 call spread, do I need an additional margin req of 10K. Please note that they...

Mark, It is interesting. I thought index settles on Friday am. How come the expiration date is Sat? Am I wrong that they settle on Friday open?

Since spx and rut will settle next Friday (7/18) at open, does it mean our margin will be released right after the settlement price is set?

add RUT Aug 650/640 @ 0.7

Because of the fed statement, there is a possibility that fed might raise interest again in the future. This is the best for premium sellers b/c the market is going nowhere.

Murray, Just got the profile at aug expiration for 1225/1200 put diagonal with different IVs. The initial debit is 2700. If spx stays at 1225 at sep expiration, you can get a very nice reward esp with increasing IV.

Coach, Thanks for your article on ratio spread. In your article, it seems that you like ratio spread better than credit spread. I think the ratio spread gives you a better expectancy in the long runs, and more flexibility. However, did you consider the margin requirement? The Return on...

Which 2 other brokers?

Anyone has suggestions on Sep vertical or sep/oct diagonal? Is it better to wait till fed meeting? Should we continue to open new positions and ignore any news or events?

As it gets nearer to expiration, theta actually decreases if the spx stays the same for OTM options.

It means 53 cents for 1% increase in volatility.

Is touch prob useful for vanilla options?

Riskarb, Perhaps you can help. We are talking about touching probability in SPX credit spread journal. I wonder if you can offer the formula or provide insights for us. I think you use it when trading barrier. We just trade vanilla, but I think it is still useful.

POT can be used to measure how often you will stop out. If you have a lower POT, it means you have a smaller chance of stopping out. If you found that your loss came from stopping out, you might want to select your short strike with a lower POT. Usually when POT increases to a...

If you have the same probablity going up the same distance as going down, they are using bell curve. Thats not right according to academic research. You should have a wider up distance than down distance using same probability. It also means it has a bigger chance of going up the same...