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Murray: In looking at your results, it kind of looks like you almost have to have a DD on. If the market moves in one direction or the other, the further removed position will probably lose money, while the one being moved towards can make good money as long as the short is not breached (and...

That's a huge margin, isn't it? If I get 10 contracts that would be $50,000 in margin. My vertical credit spread side doesn't like that esp. since I don't know how much profit, if any, I'll end up with. Mid on the 1225/1175 is $1.00 debit.

My vertical credit spread side agrees with you. I should have mentioned that the mid prices are debits not credits.

With the VIX so low, I'd like to place my first put diagonal. I'm having trouble deciding between the two following trades Sep 1225/Oct 1200 mid at $2.00 Sep 1200/Oct 1175 mid at $1.65 Any suggestions, advice, etc.

Since people have been asking, I've updated the SET vs SPX Thursday close spreadsheet. This spreadsheet compares more than eight years of the monthly SPX Thursday closing price with the Friday morning SET.

Murray: Can you share which trades and at what fills? I understand if you can't since we're not part of your investment club. Still we do benefit from your analysis of your existing trades. I for one certainly appreciate that. Thanks.

Mark: I recently opened an account with IB which I have not yet funded. Just out of curiousity, what is the customer support like? Can I call them to help me get a trade filled, like I can with ToS? Even though ToS is a bit more expensive than IB, I think they are worth it. The...

For a vertical credit spread, as far as I know, there is nothing you can do. You are totally at the mercy of where the SET falls. I would assume that the September option remains as a single which I guess depending upon your broker you may or may not be able to do anything with on Friday (as...

Yes, it does depend on the SET with regards to what your loss may be (if any). The SET could be higher or lower than today's close or could be just about the same. Just so you know, there have been times in the past where the SET was over 20 points higher or lower than the SPX close on...

But just so I'm clear. You most likely will have to do something today. Otherwise, you'll be subject to substantial SET risk, which you can do nothing about once the market closes today.

I'm just jumping in without really knowing much about setting up these types of arrangements for trading. But what about an S Corporation? Is there some reason why an S-Corp wouldn't work?

Mark: Just wanted to say that I'm sure many of us appreciate your posts. It's always good to get perspective and insight from those who've been in the business, have probably seen it all, and are trading a similar style. Thanks.

That's sort of FOTM for you isn't it. Also, from your previous postings, I would have expected that you would wait until after the FOMC meeting. Care to share your strategy on this one?

Coach: After the employment numbers, what's your thinking on adjusting your 1310/1320. Futures are off their highs.

I definately want to add diagonals to my arsenal. I've been studying them and am starting to get a feel for how they work. What I don't have a good feel for is when to get in. I understand that IV must be low, but I'm not clear if I need to get in about 4 weeks to expiration or can you...

One other thing I've been wondering about on these diagonals. You've said and one can see it in the graphs that it is really the last couple of days where the profit is made. I think you've also said that you don't really see a whole lot of movement other than that (assuming that there isn't...

Murray: Thanks for posting this as it is something I've been thinking about. But, if the 1300 is breached, then it pretty much acts like a straight vertical spread, right. There will probably be some difference in pricing, but basically you start losing money fast. And once breached I...

Yeah, I decided to bail out of my August 1300/1315 bear call today, for essentially the same reasons you cite. I plan to place another trade as an "adjustment", but I just didn't do it today. I'm going to wait until after the ISM numbers tomorrow. Also I might even place a bull put.:eek: My...

Thanks, Murray: There's a lot of functionality, but I got what I need for now.

Yeah, I was playing around with that last night [We both need to get a life :)] If you convert your position to a butterfly, how would you do this exactly and what would be the net resulting options.