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Oops. I misread the ES table. Thanks for pointing out my mistake.

Assuming that we are speaking of the ES on the CME exchange: The ES is half of a CME SP futures contract. SP is $25 for 10 points. So you multiply the quote by $1.25 See http://www.alaron.com/traders_tools/contract_specs.htm

I understand one major differrence is that ES options are electronic, no MM.

Thanks very much. Obviously I am thinking credit spread. The market is moving where I want it to go... If the market continues to move up fast, do I wait to adjust at 1310, 1320, or......? It's a very strange feeling for me to want the market to move towards my short option. AND to...

Got filled on the call side of my diagonal around 1350 (SP futures): B Aug 1330 S Jul 1310 @ 60 debit Will avoid the mistake I made on the last trade (thanks for your advice). If market goes to 1290, will probably look to liquidation rather than going scared into the put leg.

Did you follow your plan? You can feel good about following your exit rules.

The most important part of a trading plan is the exit strategy. Williams did an experiment where he entered the market on a =random= basis but followed a very specific exit strategy. He was able to do a bit better than break even, which is better than the vast majority of traders. His exit...

For me the problem with Jul is a valid confirmation of support. The market has already broken thru several areas of support.

Thanks, Chris. I really like the relative small 20 point difference in strike prices and some good support and resistence at those levels. Very tempting.

>How do you plan to deal with a drop in IV? What if it drops to 14% within a week? I still have a break even of 40 down and 50 up from today's price. Market movement still rules. AS I understand high IV tends to hang around for awhile and I do not expect much below 14 for awhile. Thanks...

Please help me understand why I am in maximum pain when the options expire worthless, when I have a net short position. Perhaps I am missing the pain of success.

I am looking at something new for me == a double diagonal position. B Aug 1330 call S Jul 1300 B Aug 1150 put S Jul 1180 requires about a 75 (futures points) debit. I ran the numbers and looks like a fairly wide profit zone. What am I missing? I havwe heard of a single...

Andy, A few observations. For the more experienced, please correct me. 1. Maximun pain theory is an exit strategy where you exit only when the pain is at its maximum. IOW, you have no exit plan, only pain to tell you when to get out. 2. Your comment about buying when vol is low...

>If you are trading a sound plan, it will be profitable over time. I remember Williams did an experiment with an exit rule. He entered the market randomly, and by following his exit rule, he actually did a little better than be.

I would not want to be a bull in this market. Upside move is an opportunity for bear call position.

I have done futures options for years, and have never heard of this rule.

Does anybody see support here, gap filled, etc? I watch the CCI and daily spx hit significant support at -100. Does fib tell us anything?

You probably have already listened to Dan Sheridan's general remarks regarding various income strategies vs speculative. If not, he is on cboe.com in the webcast archives.

OK, saw your post. Just because we are quiet, I know that I am very much interested in your actual trades. Yeah, optioncoach, it's hard to keep the finger off the trigger, but I don't see a target so I''ll wait and watch. Cash is indeed a position.

Nice trade. It is helpful to let us know when you do the trade so we can follow along. I am very interested in learning from the people here and how they think when placing positions.