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I like the way you're thinking.... and brain-storming this time of night on a weekend is commendable to say the least. As long as the volatility increases to the downside, this would offset any loss.... which I feel it would... your idea would be profitable throughout the range. Now...

If the headline reads: "FED stops raising INTEREST RATES" I am curious to hear what others feel the market reaction will be... and to what degree? Projections? Murray

Put Diagonal Calendar, The Put side of the diagonal is difficult to put on because the tremendous put-side-screw. That's not to say you can't place the trade and make money.... but it apprears as though your downside risk is greater. Here too... volability comes into play.. but as a...

Cache, You're right... the Diagonal trade is susceptible to volatiity and a decrease in volatiity does warrant recognition. From Oct to Nov last year the volatility did drop tremendously, but we're currently at those low levels. A repeat of a volatiilty drop of this magnitude would put us...

I'm off to Vegas for the weekend, leaving Wednesday. Then it's back to work for a week and then off to ski with Donna in Colorado.... with her husband's permission that is. Internet connection will be limited... but I'll look forward to catching up upon my return. Happy Trading

Phil, The thanks belongs to you for keeping this forum intact. Without this forum, none of us would have made the electronic relationships we have established so far.... or the ones yet to be discover. Murray

Question on Adjustment, Why adjust as it moves up.... you want it to move up. The 605 strike would be maximum profit.... Of course above that becomes a draw-down... but not all at once.... and if it really.. really takes off... that would be great too. As compared to the Credit...

Now... let's make it even more interesting.... Let's say you ratio 5:10..... and you don't sell the additional 5 contracts agains the current spread. The market moves up.... now those 5 additional contracts can be sold at a much greater price..... more credit. Then the market...

Hold to expiration.... and now reconfigure your profit loss. The advantage you have... is NO time premium left at expiration, but the long hardly loses any those 5 days... and you can pick up some warranted VEGA to help along the way. Check it Out Murray

Remember, at expiration, there will be no time value left in the 605 short position... and you only shorted 5 contracts. So.. as the shorts become 100% intrensic, you May longs continue to increase delta as well as gamma and hopefully some vega... and you have 10 contracts (much greater...

Kartic, Analysis graphs are not accurate due to the time frame, horizontal time frame, April to May. What you can do though is manually calculate, or use an options pricing calculator based on this months prices which differ from what next months would be today. For example... assume...

Coach, With calculated returns from 2-20% per month using this ratioed diagonal calendar trade.... and no risk to the downside under any 'swan' event.... we, our investment club, are considering making this our main trading vehicle going forward. We've analyzed what we think is every...

Now... this is a great litttle kicker.... you actually pay for the break even trades commission or profit for unlimited downside movement.... and have little risk with very nice profit potential in every direction. The trick is the Put side.... We're consider just playing the upside...

Coach, Calculate your margin: -8 April 1340c +10 May 1375c now, sell additional -2 April 1375c You only have a spread requirement for the -8 short contracts between your 1340 and 1375 strikes. As you would look at it: -8 April 1340c / +8 May 1375c, with margin -2 April 1375c...

Coach, Selling an additional 2 April 1375 against your May 1375 has no spread... no additonal margin. Murray

Kar, Try looking at the OEX.... Yesterday we sold 5 April 605c, bought 10 May 620c for even, then sold additonal 5 April 620c for .30 against the unbalanced calendar for no additonal margin requirement. Overall positon is a credit of $150 on 5,000 margin.... with tremendous profit...

Coach, We've added a little 'PUNCH' to the diagonal you entered. Since the ratio diagonal calendar is less margin intensive than say a credit spread of the same month same strikes in your current position, ie, you're only short 8 contracts instead of 10, your overall margin requirement is...

Boyo, I Take a Day Off... and I miss a multi-cultural trading experience. Only here on EliteTrader.com Coach, With your contacts within the REAL world, it may be of interest to host an online meeting about setting up LLC's, C-corps, etc. for trading. Outlining the advantages /...

Don't get me wrong... I love ToS trading platform.... but with large number credit spread positions.... www.tradeking.com has done me justice. Good fills... .65/contract. At moments like this... ToS or anyone else will not be able to get inbetween the b/a any better than anyone...

New Thread? I would prefer to stay on this thread.... because it may lead to interesting discussion as we compare the credit spreads against double diagonals..... especially towards expiration. In essence, they still can be placed as credit spreads.... but they're an entirely different...