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MD, While I have no interest in having Keith lose a new client, I'm pretty sure Optionsxpress is not margining you correctly, at least with regard to your second strategy, the synthetic put. Assuming you're covered on your short stock at least 1:1 with your long calls, they should only be...

Keith, Sorry, I didn't respond earlier, but I was out of pocket all day today. Thanks much for the detailed info. It does sound very intriguing and I'd definitely like to give it some additional thought. However, my one hesitation at the moment relates to the point GATrader brought up...

Keith, Since others don't seem to mind, I'm happy to continue this discussion here. I have no secrets :) As I've said, I really have very little knowledge of how prop firms work. So, if you don't mind, perhaps you could start by responding to a common perception of prop firms generally...

Keith, Yeah, it's a regular ol' Reg T account. So I've no doubt the margin requirement is greater than what you describe. As such, I'm definitely intrigued and would be interested in learning more. However, though I've read a bit about them on the ET boards, I really have no idea how Prop...

Praetorian, Since it's a 10-point spread, the 4.5 credit requires 5.5 margin per spread. Yes, that's just for November (I only put these on with 45-25 days to expiry to maximize theta decay). For October, I wrote my call spread when the short calls had a higher delta than I usually do and...

Keith, An Iron Albatross is simply an Iron Condor but without equidistant strikes between the short options. For example, I currently have one on the XEO for November that's long 490 puts/short 500 puts/short 540 calls/long 550 calls at a net credit of $4.50. I always leg into the position...

Keith, I recommended that earlier in this thread to some derision due to some claims that buying the wings would eliminate the "edge" of the short strangle strategy. Nonetheless, though I trade off the floor, I make money with iron condors (actually, iron albatrosses, to be precise) on the...

Deus Ex Machina, Very helpful info. One question, however. Have you considered that the reason you have made money with this strategy since April might be related to the fact that we have been in a declining vol environment since March, which has favored all vega negative strategies? As has...

Since I assume you're using front month options, 80-100 points OTM per side seems excessive. Why not bring your short strikes in to say 40-60 points OTM and then hedge with farther OTM options (creating an iron condor). By doing so, you may be able to generate the same amount of premium without...

Nitro, You're the first person on either this or the Optionetics board to get my somewhat obscure reference. Kudos! Regards, HD

While that's correct, the new VIX, which has been pointed out is calculated differently and is based on the SPX rather than the OEX, actually correlates pretty well with the old VIX (though it does skew slightly lower). Given that correlation, it should continue to work as a contrary sentiment...

Don, No problem and I appreciate the reply. Though it seems I haven't been at the game as long as you and, though I've made enough to pay the bills, haven't yet made millions with options as you have, I think I've learned a thing or two about options since I started trading them several years...

While vol has stayed low for a lot longer than many of us thought, this is still a dangerous market to be short vega. Thus, to offset my core vega neg OEX iron condor positions, I've been contemplating putting on a few OTM calendars on some select low IV percentile names (there are plenty to...

Sorry, but if anything's "simplistic", it's Mr. Bright's last post. No discussion of the Greeks or volatility make me question his understanding of options, particularly from a retail trader's perspective. Credit spreads, if properly traded, are nothing like "waiting for red or black" to...

I've used them for years. It can be a great strategy with a high probability of profit. Just be careful and make sure you're highly disciplined in your risk management. Otherwise, gamma will kill you and one loser will wipe out any number of gains. Like many, I learned that the hard way. Good luck.

Basically (very basically), while there are various permutations, its an arbitrage strategy that involves selling volatility on the broad market while buying volatility on specific low vol, higher beta names. There are tons of Phd types trying to raise funds with purported proprietary dispersion...

Calendars, in my opinion, are not the best way to play directional moves. However, I do agree with GATrader that your assumptions are somewhat facile. While bottoms and tops are often accompanied by extreme volatility readings, they aren't always. As a corollary point, extreme vol readings can...

Actually, I just found the answer. Today the CBOE started applying the same methodology to the VXN that they are using to calculate the new VIX. So the point and percentage changes being quoted for the VXN today are meaningless.

Can anyone explain the extremely odd situation with the VXN today? Unlike the VIX (the old and new varieties), the VXN is DOWN 1.75 (or 5.9%) currently with the NDX down over 2%. Perhaps there's something wrong with the data? Otherwise, this would be really bizarre.

trade-ya, I must say that I share some of your skepticism regarding whether an edge can be derived from daytrading. I attribute that opinion primarily to the fact that I've never daytraded before, having for the past several years focused exclusively on some non-directional volatility-based...