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Thanks Coach. Makes sense. Although I'm not sure I understand your margin at risk explanation. That 15k is yours in the sense that if the options expired in the money, your max loss is 150,000-- but that 15k is still yours-- you're not going to "lose" it-- so I don't understand how the...

Coach, I'm confused about a few things regarding your most recent position: -you said that your total margin req is $150,000. Shouldn't it be atleast $15000 less than that (shouldn't the credit you received be subtracted frm the total margin)? -I'm still confused about your hedging...

momoneythansens- WHat you say makes a lot of sense. Similar (albeit far less articulate) thoughts had been bubbling in my mind as I've been reading and evaluating this strategy. Personally, i've decided to keep it small, keep far OTM and stick with bear calls (helps me sleep better knowing...

Was just thinking about something... I sold a Nov 1240/1250 call spread on 10/12 for Nov expiry. At the time, the SPX was around 1185. I received 1.10 for it. I was able to buy it out yesterday for .6 even though the SPX had risen to around 1198. got me thinking... do spreads start...

So, I bought back my Nov 1240/1250 (that I sold for 1.10) for .6 today. I'm happy. Made a littlr profit, and i'll sit out November. thanks guys!

I have an SPX call spread, Nov 124/125 at 1.10 that I took up about 45 days to expiration. I could close it out now for 1.00, allowing me to basically break even. Should I close it out and wait out November?

True, but for now, I'm happier (and sleep far better), with the call spreads. I know that I get much less premium, but I like that I'm not exposed to fear. There's a lot of fear-provoking things happening and that could happen right now. So, I'd rather stay away from it. BTW, what did you...

This is why I think I'm more comfortable just writing 5% OTM bear call spreads. The market tends to move up slower than it moves down; giving more time (and more liquidity) to exit a spread. What do you guys think?

Thanks guys, now it makes sense. I was thinking short butterfiles, when I should've been thinking long butterflies. Thanks.

of using a butterfly to roll down a bull put spread (or roll up a bear call spread)? Say you have a put spread at 1 1218 short 1 1217 long To roll down and turn this into a buttergfly, are you saying that I should buy 1 more 1217 long and sell 1 1216 short (keepig the 1218...

Got a fill on the OCT SPX 1240/1250 call spread at .3. I had to let the order sit for about 30 mins. Optioncoach, when I posted earlier about that put spread that I was hoping to get for .45 I realize that price was unrealistic. I got it by taking the diff of the midpoint bid/asks and then...

I see what you're talking about with regard to the puts. What do you think of writing this put spread today for October expiration: for 1135 x 1120 for a .45 credit? Also, in general, what do you think of trying to open spreads on Fridays or before holiday weekends-- that way you get...

optioncoach- I recently joined the forum and have been reading over much of this thread. Its been very interesting to say the least. But, I still have a few questions about your strategy that I'm hoping you can answer. Hopefully, I haven't missed the answers to these questions in past...