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I think piccon used to do spreads on the NDX. You might search for his name on this thread. I seem to recall a post where he was considering or decided to stop doing spreads on the NDX because it is so volatile (but I could be wrong).

Coach: You still have OptionVue don't you. How does the chart change when you model this in OptionVue?

The green line is the risk profile at expiration (notice the date on the graph for the green line is 12/15/06). The white line is today's date and therefore is the risk curve for today. I believe the curve assumes a constant volatility, which isn't shown on the results (but I'm pretty sure is...

I don't get it. I tried analyzing the following position: STO 10 Dec 1425 SPX BTO 20 Jan 1475 SPX The idea here was to maintain a credit. The credit is about $1,000 which on a $50,000 margin is 2%. The risk profile to me doesn't appear to provide much of an advantage (see attached)...

Thanks for the explanation, Mark. I do not understand what curvature really means. But now that you have indicated what you have done I can set up some theoretical positions in ToS and model the risk profile and look at the greeks to see what this all really means. I just needed something...

Mark: Can you be specific about how you added the curvature. What options did you buy/sell, etc. Thanks

The strangest thing just happened. I decided to take this small downturn in the RUT to get out of my last bear call for this year. The position was the 830/840 DEC RUT. The mid was $1.00 with an ask of $1.20. I offerred to buy back at $1.05. I was filled in less than 5 seconds at...

Murray: That would be a thread I would be very interested in. Suggest that you add strangles as well.

Those rates are very good, but... This is a subsidiary of a Swiss bank. So the account doesn't look like it is FDIC insured. Also, I lived in Switzerland for several years and never heard of the parent bank. This bank is located in the Carribean. Mav, do you have direct experience...

Those who read the thread regularly know that I have whined and complained about work getting in the way of my trading (mostly because I travel alot). Well, no more [okay..., I'll probably still whine and complain, but I can no longer blame the lack of availability of internet service :)]. I...

So, if I can be blunt, are you losing your enthusiasm for this strategy after trying it out. Or is it more the current market environment that is perhaps limiting the strategy.

Coach: Haven't heard much recently on your latest cross fly strategy. How is that working out?

Are you guys having any issues with this thread? When I open it, I keep getting a virus message from my anti-virus software.

Rally, Cache: Have you guys ever traded SOX credit spreads. I would think that it might be an index that fits your strategies. It is volatile with what looks like good premium. Example: SOX is currently at about 457 down almost 9 points today DEC SOX 460/465 bear call has a mid of...

Mav: Could you elaborate more, please. I know that these FOTM credit spreads are, to put it mildly, not your cup of tea. Yet you say you make most of your profits by selling premium, but not ATM. So are you selling slightly CTM or ITM or is it primarily your so called X-mas tree strategy...

Cache: Nice thread. You have a talent for clearly explaining your thoughts and opinions. Personally, I would like to do some trades more CTM, but as you pointed out in a post a month or so ago, CTM spreads generally require more oversight than FOTM. Just curious as to your current %...

Check out Dan Sheridan's webcast on the IC. He talks about a "mickey mouse ear" (which is how his suggested hedge looks on the risk profile curve) on a hypothetical bull put. I don't have time to get the link, but just Google his name with the word CBOE. Basically he is hedging a SPX bull...

Have to pretty much agree with Rally on this one. When I look at the months where I adjusted, I have generally lost more than if I had just closed the position and moved on. Most months I do just close the position and move on. Unfortunately for me, October was not one of those months...

Can someone remind me of what 1 tick on the E-mini SP500 is? Is it 0.25 points? Thanks.

What are you looking at on the SPX. The Dec 1450/1460 bear call has a mid of about $0.60 but the range is $0.15 to $0.60 so it's doubtful that a fill would happen at $0.50.