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I place my breakeven date for one week prior to expiration. If the market goes far below the breakeven point, the future premium can go below the current premium == it can go into negative theta territory. If you do an analysis of a calendar, you will see what happens. I have placed all...

I have a BIDU Dec/Jan 380 call calendar. I sell a vertical against it each month, sorta a covered call. FWIW This is in my personal, retail account, not managed.

Took profit on one RIG calendar at 340. Letting the other calendar and vertical run.

1. Closed the fxi calendar @ 140 because it had negative theta. Replaced it with jul/aug 135 put calendar at 280. The vertical is still in play. 2. Closed the IBM calendar at 220, because of negative theta, and earning coming up. Closed vertical at nominal 17. I close (or adjust)...

Looking at fxi this weekend -- at 133.40 My new position is $115 underwater, and if the market moves to 130 (where I think it will bottom out), there is only nominal loss. I have three weeks before "drop dead" (I get out before expiration week), so I think I can leave it alone for now...

I look at it in this way: You are choosing between gamma and theta to profit from the market. Higher volty means an increase in the probability of market movement (gamma), which must be offset by higher premiums (theta) to compensate the option writers.

FXI is now a problem. Liquidated the vertical for 32 cents and added Jul 145/150 call vertical for $1.

At this time the TOS backtester is not linked to the analysis page. You can backtest numbers -- profit and loss -- but cannot see the analysis as you can with optionvue.

1. I thought about that, but I am more concerned about the down side than vega risk, so I decided to leave it a call vertical. The vega should be ok because it is on the low side when I placed the trade. I will have to give it more thought. 2. Those show the daily liquidation value of...

You can trade and still get unemployment, legally. UC looks at wages, not income and you only report **wages** earned each week. Other income such as trading and even self-employment are not considered as long as you are legitimately seeking employment, sending resumes, etc. Other...

Holy macaroons! The position has moved from 260 to 400 within a couple of hours. I placed an order at 340 today, got filled at 310, and now its at 400. Daytrading LEAPS??? PS, I am very aware that this is a liquidity issue. When one option in the calendar gets traded, the other sits...

I can see someone using this in a highly volatile market -- protects against the rollercoaster moves. But I think there are better methods.

Very commission intensive. Hedging the upside?

For those who are interested, I have attached a spreadsheet of my trades and the running totals for this month.

Basically you are looking to create, over the immediate time period, a flat PL line, and your profit comes from time decay rather than market movement. The biggest enemy to a position is market movement immediately after putting it on. So you want a flat line over the short-term, and allow...

That seems to work here. You have to look at the P/L curve and see what gives you the most protection on the down move, without threatening you on the upside move. I am not looking to make a profit on the downside, just to contain my loss (hedging). The calendars tend to be "sluggish"...

There is an old saying, "To have a million dollar account is easy. You start with two million." As mentioned in the above posts, you must first learn how to protect your account, and only then do you start looking at profits. After a year of trading, if you are at breakeven, you can then...

Watch Dan Sheridan's webinar "Dan Sheridan's Bring in Monthly Income in a Volatile Market" http://oiwebcasts.cboe.com/portal/v_g.asp?G=5&events_page_num=3# Also, on the next page, "Enhancing Portfolio Income" http://oiwebcasts.cboe.com/portal/v_g.asp?G=5&events_page_num=4 You...

One last thing. While others may have some good ideas, these ideas may not fit your trading style. The question on how far out to go with options is a relative question == there are trade-offs on any approach. In the end, YOU will become the expert on this type of trading for your style...

Start small, one or two contracts, until you get the feel of what you are doing. Trading too large is Number One mistake for newbies. Give yourself at least 6 months, and gradually increase the trading size. Forget about making any money. Just focus on learning, and consider your losses...