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Thank you, I will check this out. What's more, is that it looks like I might be able to get into these trades with a small debit and sometimes a credit. I'm still researching this though. Thanks again.

OK, I justify this as being on topic because coach said we could ask him questions about his book on here :D Anyone else, feel free to chime in. I've been swing trading for a long time and I have a system that I use that does pretty well. In a nutshell, it's long only and I allocate a...

MoMoney, I've been reading and re-reading the paragraph quoted below. I'm familiar with straddles and strangles, but I'm having a difficult time understanding exactly what you're proposing to do (my fault, not yours!). So back to the 1340 bear call spread and SPX is approaching 1310. Are...

I really like his suggestion so far, and you bring up a very good point. For some reason, in my mind, I have the situation of the position going against me very quickly (i.e. open the spread, SPX jumps or dumps 30 points in a few days). Of course, the oscillators will continue to show the...

Thank you for the clarification. This sounds like something I'll need to do my homework on as it seems like it fits my risk profile. I'm sure I'll bother you later with questions. :D

I was just using the ES options as an example, but you make me think I'm missing something. The ES value is 1/2 of SPX, correct? I assume the probabilities are the same. Is the ES more volatile? I may be wrong, but isn't the ES trading at 24 hours an advantage? I think I might rather be...

Thank you for the reply. I think we're a bit different. I'm a bit more of a mechanical trader than discretionary. Also, I believe that I'm taking high probability trades. If the trade doesn't go in my favor, I want out with as small of a loss (or break even) as possible. I really don't...

You make a lot of very fine points and I thank you. I agree that it will be a lot easier said than done. It seems that all hedging strategies require a lot of babysitting. This one seemed the lesser of all evils. Point taken on the hedging w/ unlimited risk. I'll add that to my list of...

OK, coach's book should arrive in the mail today, but I couldn't stop thinking about hedging strategies based on posts here. I've written down a few and the one that keeps jumping back into my head that seems to suit my taste is picking up the underlying futures contract (assuming I'm trading...

Precisely. I was stuck on the old equity options multiplier where everything = 100. Thanks for making it exceptionally clear.

rallymode, Much thanks for your reply. Ah yes, I was looking at the multiplier on the underlying, not the option. Thank you. So my credit on the ES spread would be .20 * 50 and on the SPX it would be .20 * 100. Phew!

I have a completely ignorant question. I've always done stock options, never index options ... your patience is very much appreciated. I'm looking at b/a spreads on the SPX vs. ES. The move per tick on the ES appears to be $12.50 (50 (multiplier) * .25 (increment)). So with a 5 point...

I'd be very interested. I'm currently trying to soak up as much information as possible. I'll need something to read while I'm waiting for coach's book to arrive. :D

Yes, this makes sense as to why I haven't really come up with a strategy for hedging that I'm comfortable with. I suppose this is going to have to be another round of personal discovery. ICs haven't turned me off (yet?), so I suppose that's a way to offset some of a potential loss. At this...

Thank you for that piece of information and your response. I'm certainly looking to start small and simple. Diagonals sound like something I need to keep my eye on and get educated on, but not start with. I believe I read in this thread that adjustments are really only required one or two...

I'm a newb, please have mercy. It's been said a few times I've noticed, but I can't thank Coach enough for starting this thread and to most everyone else for keeping it productive and positive. What a great thing to "stumble" on. A quick history on why I'm posting .... It took me a...