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Tradingjournals, I will open a practice account this week. I don't think I will share the full extent of my knowledge with the brokers. I read somewhere earlier of the type of trading experience and numbers the brokers want to see before allowing the level needed dfor the spreads, and lo and...

Teaderlux thanks, as you can tell by my last post, I will have to file this away for later. Did you only trade the bull puts? What do think about falcon views plan to only c Trade the bear calls as the upside movements are less than the downward side, giving you more safety. Thanks michael

Tradingjournals, thanks My Answers would not have all been yes. To show you my expert knowledge, the answers would have been 1. Huh? 2. Huh? And 3. Huh? I am a total rookie at all this, so I appreciate your time in helping. I have no broker, and have never traded an option. Was going to open...

Trading journals, My name is Michael, but for falconview living in Belize, I usd the spanish version. You are very insightfull about me being a man of few words, and I am glad you might think the ones I use are solid! I do not trade at all, just looking at the possibility after hearing...

What am I missing here (on top of all the other things) with the OEX and NDX. If you look at the percentage change say today for both of them from 10:15 to 11:30. Both down .6% equally. So if the NDX index is approx 4 times that of the OEX, isn't that where my 4 times comes from? Are you saying...

Falconview, hi from the worrying dog! You might have missed my question on the OEX compared to the NDX, where you said the NDX was rougly equivalent to 10 times the OEX, but that is not correct is it? seemed more like 4 times or so to me. Doesn't that make my 200 point OTM spread more like a 50...

falconview, here was my paper trade for Aug, done on the Monday after settlment, on the NDX. At the time it was trading around 1840 and my forecast was for a rising market so I did the bull put spread. 1625/1600 for a premium of 1.30. Looked good at first, then lately has been reversing...

Falconview, are you the owner of the hostel? Is it busy this time of year? Just wanted to check on the numbers you gave me earlier. You talked about 4 spreads or 20 points and then said multiply by 10 for the NDX, but isn't that closer to 4 rather than 10? I like limiting the whole credit...

OK, so what are you going to do when eventually, and it will happen (as all of the credit spread traders say) the perfect storm hits and you watch a huge portion of your money just disappear? Could happen with your strategy couldn't it?

OK, but I still think that line of thinking is going to lead you a big loss eventually without an adjustment sstrategy. Take a look at http://www.monthlycashthruoptions.com/ReturnOnInvestment.htm and scroll down to the trades they show. What about that strategy of rolling out to avoid the big...

Falconview, I think this discussion might be in the wrong place on this site. this is in a forum for peoples journals (I think probably Phils) Do you think we should move it into the options portion of the site? Michael

Falconview, your closing the spread was one point from the strike price, which is way too close. If you did that long before that you would be able to do it for a much smaller loss. To say there ais a level with 100% success, is just not statistically possible. Do you have any knowledge (or...

Hi falconview, are you actually living in Belize? In the hills or on the coast? The 200 point out of the money only works for monthly options. I havebeen watching it, and still trying to figure out thebest exit strategy if the market moves against you. Is there somehwere you can go back and get...

Advice understood, now can you please tell me the educational path you would undertake knowing what you know now. I am open to new paths. Thanks Michael

What I mean is if you were going to make 1.20 on the spread, when it gets to the point where you would lose 1.80, get out. that will be a long way from the first strike point, with a big margin for safety. I was reading about another trader who trades the RUT, which I beleive is the European...

Sorry, I meant settlement month rather than week

falconview, your thinking is starting to sound close to mine. I think the idea would be to open the spread on the Monday after settlement date of the previous week. Look for around 1.20 spread, at least 10% from the current price of the NDX and based on some technical analysis (which I haven't...

Mike you are right, which is why Falconview is only simulating trading, and trying to learn as much as he can to see if he actually wants to do it for real. I am in the same boat, and also have no clue yet what the real world of credit spread options is all about. I think the two of us are...

Falconview, your loss experience is exactly why I would avoid the weeklys based on what I have see in my researching this. Yes you have more trades, more money, but I think you would agree that does not always pan out, does it? If you are playing with only a few points until you hit the strike...

HI, I am looking at this system which an acquaintance has been doing for a few years with good success. I am a total rookie at this, but have done a few simulated trades and interested to do more. From what you are talking about it seems a slightly different strategy with more room for safety...