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OK guys, I'll come forward. I am the one who sold you all those OTM calls. By the thousands. Now I'm busy taking all those margin calls. Wait, here comes one from Nigeria!

Please don't do this.

Now that's the first rule to know...:mad:

How can she define 50% of capital at risk? In a naked short position, there is no way of doing this.

Unfortunately, in the end it is mostly a directional bet.... :eek:

Does ES really trades 24/7? I'm asking because I look to hedge options position with a conditional order to short ES contracts, and worried about a gap down. :confused:

Why do you calll this a"bull strategy"? It was put on when spot was at 1345. If the market rallied to 1400 by July exp., the PF would lose around 8 points. Rally higher- lose much more. Not ideal for a "bull strategy".

Cat fight!!! http://www.amazon.com/California-Exotics-Devons-Private-Pleasures/dp/B000EZZ85S

What would be the margin requirement for a short ATM ES straddle?

Do yourself a favor and don't trade your retirement account. You will most probably lose most of it. Just buy treasury notes.

I normally trade 500 lot SPX vertical spreads. I get filled close to mid-price (10 c worse), no liquidity problems at all. However, I do have to call the trade desk to do that.

Me Tarzan, you Jane :cool:

Close for $2. Nice quick profit :)

Friday I shorted 10 SPX March 1410 calls from $3.2 I still think this is a low risk trade. And yes, I have seen where the futures trade today. risk-control plan: I will close the trade if spot hits 1400 :cool:

NOW! NOW! Now is the time to panic! :D

tnx

Tnx again. sorry to go on about this, but it is important and practical for me. How about hedging with SP futures? e.g. long one future contract for every 5 SPX ATM puts? will that work (delta-wise)? would that reduce the margin requirement ('cause option and future are for the same U/L)?

IOW, to hedge 40 SPX Feb ATM calls , I need to short 40 ES contracts. Reg T margin for this is $320,000. Anybody knows if PM would be lighter for this position?

Thanks

Will it be correct to delta hedge one SPX put with 2 ES contracts? any other viable/liquid possibility (besides the too expensive 100 SPY shares)? Tnx