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Thanks, Coach: Where do you think the SPX is headed? I finally put a bull call spread on today when the SPX was down 7 points and had to leave. Now I see that it ended down almost 12 points. I hope we didn't just see the top.

I've been taking part in weekly contests to guess the Friday close of the SPX, DJI, etc. I've entered my guesses twice and won twice (if I could only trust myself and trade accordingly :)] Anyway the point of this is that the prizes have been books on options. I just received "The Options...

Murray: Thanks for providing the details. The percentages that you mention are of what? Margin on the position? So the 18% loss is 18% of $10,000 margin (10 quantity)? And the 4% loss on the DD. How is that calculated? Is it of the margin on the position and does it include the debit...

Anybody else see this announcement: Interactive Brokers is pleased to announce the immediate availability of Penny Option Pricing. This exciting development will be available to general investors sometime in 2007. However, IB clients can use IB's technology immediately to trade US options in...

I'm looking at the VIX as well as a possible indicator. What indicators do you typically use for the SPX?

Coach, do you have any response to my question on the use of MA crossovers on the SPX?

I'd like opinions on the use of MA crossovers for the SPX. If useful, which MAs make sense (i.e. 50day/9day)

If the short strike gets in trouble it seems that there would be virtually no hedging power from the long (maybe on the put side since VIX would be increasing). In your experience have you found such wide spreads to be a problem when you need to adjust out of them?

Mark: Diagonals or verticals on the recent trades?

Thanks, Andy: I agree with all your points and am planning to add hedges early. The only difference at this point is that I'm becoming more partial to the diagonals on the put side as opposed to verticals. We'll see how it goes. EDIT: Good to see you posting again.

Jeff: Are you still selling naked options on S&P futures? If so, would you mind sharing how they did on the call side this month? Thanks.

As part of the Coach/Dr. Phil show: Here's my list of things learned this month (regarding FOTM credit spreads only :) the other list is too long) 1) I've given up the bear call only strategy. I will now be adding put diagonals to my strategy when appropriate. I looked at the losses...

Ditto squared: I may have been perceived to be a hard-core credit spread trader, but this month has definately proven why one needs to have more than one tool in the box. After all, ultimately isn't this a learning forum. Since I've been on the thread for well over a year, I think I...

Coach: I'm not clear on what your trigger levels will be for adjusting diagonals. With verticals you consider adjusting the position when the index is about 15 points from the short strike. Are you planning to use the same trigger for diagonals? If so, since most here are placing there...

Yes, but on the call diagonals doesn't vega usually decrease as the market moves up especially if it is a strong move. Therefore, vega would seem to provide more "benefits" for put diagonals. I'm just wondering how the call diagonals and call verticals compare as the short is near to being...

Coach: Agree with everything you said. But I thought one of the advantages of the diagonal was the ability to adjust it more readily than the vertical. I've seen those diagrams where the value ramps up as the short is approached and even after the short is breached, one normally has 5 or so...

Mark: Didn't the diagonals fare better than an equivalent (or similar) vertical in this bullish nightmare?

Wow, Heather. You must have a cast iron stomach to have been able to last up to SPX 1372. What did it cost to get out that point $7+? If misery loves company, then I'll chime in and say that I too took a substantial loss this month and am also rethinking my option trading strategy. In my...

Mo: I briefly reviewed the info on Hoadley's website, but didn't see anything about the optionsXpress data feed. I have an account with optionsXpress so does that mean I get a free data feed. Also, I would assume that the Excel add-in is where one would set up the feed to Hoadley's add in...

With regards to the edit. As I rethink this, although the cost might seem relatively high, if the SET is exactly the same as the SPX close on Thursday, then most of that ITM amount would be received back upon settlement. So the risk would be an opposite move that doesn't go ITM enough on the...