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Get some backtesting software and find the real answer :D

Crawl before you run.

Joel, A couple of things besides the books. Books are fine because they help drive home some basic concepts and help get a grasp on advanced concepts. Books like Natenburg's will probably have you dazed and confused after the basics (or at least they did a dummy like me). What really...

That's the beauty of options, you can really map your sentiment to your strategy. You do have a higher likelihood of break even by buying the 80 calls. You also have a lot more capital at risk should AAPL tank. The flip side, less likely that the 90 call is ITM @ expiration. Cheaper price...

This whole 9/11 conspiracy bit is so tired.

Wasn't it Stan and Kyle from South Park who already uncovered this?

I think the common theme to managing ICs is that you can't really "manage" ICs. Once your short strike is breached, your options become very limited and your losses add up quickly. There are many discussions about this on the SPX Credit Trader thread. I also recommend watching all of Dan...

Keep in mind .... You're also buying pretty expensive options. At .25 with a stock price of 24.5, the IV is 24.65 which is at the high end of the 52 week range.

Yes, I quit reading it before I got through it all. Another thing that was weird, is that he mentioned these "Siamese Condors". So I googled it and found the article. http://www.sfomag.com/homefeaturedetail.asp?ID=1563109335&MonthNameID=September&YearID=2004 If you look at this "new...

OK boys, I got some screen shots and I did it with ToS to show a) they usually price the mid point of the spread b) you can see the risk graph Hopefully this will alleviate the concerns regarding my inability to read quotes :p Mind you, FRE would have to move a good bit and fast to make...

True, but c'mon guys, I wouldn't pay $5.00 for a credit spread :D

OK, you're looking at the quote now and you're correct. I'll post a screen shot the next time I see it. I have a feeling an MM would never fill the spread @ 5.00. Maybe I'll try sometime for grins.

Yes, 100% if I let them expire in the money, but in the case of a put credit spread, if the underlying moves higher, I can buy back the spread at a lower cost. If it sinks lower, I can hold until expiration and get $5.00 minus the $5.00 credit = $0? I guess I'll post a screenshot next time I...

No, I wasn't getting them switched around. IB quotes credit spreads as negative.

It was FRE

I was putting together some spreads for a look this morning and got my strikes a little wrong and noticed something strange. The B/A spread for DEC 70/DEC 75 put credit spread is -5.20/-4.80. Isn't 5.00 the maximum risk for this spread at expiration? I'm sure I couldn't get the 5.20 credit...

credit and debit spreads? No more naked? Thanks for the great journal, it was a good read.

so 5 minutes ago.

You're right, the b/a spreads for options are much different than the spreads for stocks (read, much crappier). I think this makes day trading options a losing game. With that, I would position trade options and you have a few things that you can do. First, you can "leg" into a spread. In...

Dayum :D