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Diago fly + 1 long call or put depends on direction, my favorite: least margin and commissions. Adjustment: sell bull put if went up short strike below the center of diago fly (where 2 initial shorts sold), will flatten more the graph and get out with a scratch. Execution, long the diago fly...

You can skip one long call and sell more bull put spreads.

@Samer: same concept, slight different legging on NDX. 3-5 days market exposure, enter thursday the week before the expiration week. Market makers tend to reduce IV on purpose the friday to compensate for weekend theta decay. The risk graph is a bit optmistic, market makers will eat a good part...

You can reduce the number of legs by replacing the ratio by a diago, interesting in the put side as the diago likes IV surge that comes when vehicle goes south.

Samer; your strategy is ratiospread+long put and call . You risk graph is good but you'll have problems with commissions and slippage even with the most liquid options of the market. So it is profitable only on NDX or SPXPM (not even RUT) and you also need to make it work for at least 3 weeks...

If you make 1% a day on 50000 usd starting capital and you trade 600 day and reinvest to compound, =50000*(1,01)^600 ==> you get 19579169,85 usd in less than 3 years of trading, you do that 20 years you buy the USA. More seriously, if you can make 62,5 usd with a consistent basis every day the...

I don't wait to get too close to short legs, I take profit when we are close to them, get out if we go to quickly in their direction. I took 450 usd profit from my position of May when we reached minus 2600 on NDX. The trick is to make a debit broken wing, not a credit one.

I don't adjust, if I come close to a dangerous area, I reset my position entirely. Better loose a profit opprtunity than get a loss.

1 month, I don't touch SPX, because of the slippage.

I tend to close before expiry if I'm too far from "the sweet spot", and hold more if I'm within the center of the "sweet spot", the area where my short legs are. Here a risk graph, at expiration and just before expiration for May NDX double broken wing fly. http://i40.tinypic.com/34fnqms.png...

When I played Iron condors, when price moved too far from the center, I had to close at loss, if i hold position and hope the price retraces I take huge risks, especially close to expiration. Now when I use the double broken wing fly, if the price stays at the center (flat), I lose a tiny...

I'm currently using this delta neutral strategy, but at small debit, close to 0. I don't use it on stocks because of possible gaps. Only NDX and RUT for me. Using it at debit allows me to get out of the position with small loss in case on violent move of the market (say August 2011). I'm...

I'm an IB user and I'm wondering if I can do that: I have : 6 X NDX Bear call spread: +2625 -2650 expiry December 2011 with 15000 usd margin I want to add : 6 X NDX Bull put spread: +1800 -1775 expiry December 2011 with less than 15000 usd margin Do my final total margin will be 15000...

Delevrage, play much smaller

Because they are lazy and they think that there is a holy grail method secretly kept by professional traders.

Hey dude you are in the wrong forum. I have the Msc in computer science expertise in C# (certifiied MCPD Winforms .NET 3.5) and I already automated my strategy (IB API) but I will not bother sending my CV neither the overwhelming majority of this forum users because we are bad ass traders who...

You neither are one of them. And you are probably even a smaller trader than myself and even more likely less profitable than I am.

When you have highly sought after degree, you often get a well paid job and loose you "hunger" to open a business, take risks. Those who have not a degree tend to take more risks, because they have less to loose. I have a masters degree in computer science and I trade for a living, so not all...

Don't repair, take your loss before the damage becomes unsustainable and you end up covering at the worst moment. Stop playing volatile stocks with credit spreads. Use credit spreads on NDX or RUT or other European Style options, far OTM and 2 month expiry date.

You can use .NET and C# with Interactive brokers: http://ibcsharp.codeplex.com/