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Beware of energy vampires and soul suckers. Wear some garlic and carry a mirror.

Bought the spread back for $54, leaving $84 profit. So ends the first paper trade.

Okay. Thanks for the overview. I hope that all works out for you. Is that TDAmeritrade's API you are using?

Oh, yeah. I understand the need for patience in this game. I've learned that trading MES. But if IV of 194 is an anomaly, rather than the norm (and I have no idea if it is), how many times could that show up in a year? Now, if it isn't an anomaly, and it happens, say, monthly, then I might could...

I certainly agree with your assessment. And since you pointed out the theta curve to me earlier, and given that theta decay accelerates <45DTE, it now makes sense why the general recommendation for DTE is 45-60.

Well, based on that, with extremely high IV, I guess it is possible. But wouldn't an IV of 194 be an outlier? And if you were only willing to trade those very high, outlier IVs, wouldn't you spend most of your time just waiting and not trading? Doesn't make sense to me, unless you planned on...

No. I was serious. It looks useful to me, but I have to dig into it more.

I wasn't going to touch this, but... Everyone on this board, who has been around for even a few months, knows @destriero, along with a handful of others, is/are OGs. Keep in mind, no one is obligated to help us learn anything about trading options. We are not entitled to help. It just doesn't...

I have a basic grasp of volatility, but not in how it affects extrinsic. I'll add that to my ToDo list. Thanks for the book recommendation. BTW, I agree with you about dest. I've read some of his stuff but, at my level, it was like reading a foreign language. lol

Wow! I just looked that up. One of the critical missing links! Damn... that is exciting! I know how I'll be spending my day. Than you, again, for pointing that out. :)

Oh, okay. I can see where that would help with choice of timeframe. Will make that high on my ToDo list. Thanks.

Well, I thought I did have a handle on theta decay, which works in favor of the seller. So you have intrinsic and extrinsic value, with extrinsic being primarily made up of theta. From the long perspective, if intrinsic value for a put is strike minus spot, and you have 3 points of intrinsic...

Oh, yeah. I see my mistake. 38DTE. Numbers are starting to get jumbled up! lol

No. I mean it was 52DTE at the point of inception, when the trade was made on 8/9.

I think that should be 52DTE.

With credit spreads, I don't see how you can have anything but an upside-down risk:reward because premium received will always be less than your risk. Either that or I'm missing something.

The 30d meant a 30 delta. I thought writing it as 30d was the correct shorthand for that. Maybe not. Sorry for the confusion. :) This is where I got the Trade Station info: https://www.tradestation.com/pricing/options-margin-requirements/

I just used minimum margin to show my calculations to see if they are correct because if you have multiple trades on, you have to watch that to keep yourself out of margin trouble. However, I would never trade options with minimum margin. IMO, if you can't fund an options trading account with at...

Yeah, this is a long post, but there was no way to provide the pertinent details without writing at length. :( About nine months (or so) ago, I became interested in learning about options. Along the way, a number of you have taken the time to offer insights into the mechanics of trading...

Okay. I think I got it. Thank you!