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Heaps! But the book is still very good. db

I've done their courses (intermediate, ICT, MICT) and found them a good starting point. Useful to know is that you can attend their intermediate course as many times as you like (very good for those just starting out and needing more than just one weekend to learn it all) without having to pay...

No need to reinvent the wheel :), what you are proposing is already being done. Go to www.randomwalktrading.com and check out 'tag-along'. db

high option volume simply means a lot of options are changing hands (to close or to open positions or to hedge, but we don't know which). Sadly, no meaningful conclusions can be drawn from this. db

That would be me. It's working fine so far but as I said earlier, the trick is in managing the position - when to roll, where to roll to (strike and month), just roll the put/call or do you use a credit/debit spread (and leave the long/short options alone) to adjust etc etc.. There are more...

As with everything in trading, the trick is in the management of the position. db

Not quite correct. 3.10 minus 2 equals 1.10. Therefore you roll (anything less than 1.30 for a 5 point spread you roll up). The roll is the purchase of the bear put spread - you sell the lower strike put (the one you own) and buy the higher strike put (the one you want to own) for a debit of...

Congratulations, nice summary except for point 1, buying the itm put (giving you a synthetic otm call) - should be an otm put (giving a synthetic itm call and thus a higher delta). To answer your questions: 1. the strategy works well if the underlying moves as you want it to - if it doesn't...

Not to mention the increased risk of early assignment for the ditm legs :). db

I see. That's the most unusual form of 'money management' I have come across. Thank you for your candor. Good luck. db

For those who are not aware, TOS gives you the prob of touching and expiring in their platform. Works well if the volatility inputs are 'correct' :). But then, coming to think of it, everything works well if the vol guess is good. db

1. There's a margin requirement for the credit vertical which thus negates this perceived 'advantage' of getting a credit in your account. 2. the greeks are the same for the credit and debit verticals so it doesn't really matter which one you pick - debits are synthetically credits and vice...

A nice and simple trade plan. You obviously have significant capital that you can afford to risk $11000. If you don't mind my asking, what money management rules do you use? db

So forex, what was your trade plan when you opened your positions? db

I'm still waiting for an answer to my previous post: ------------------------------------------------------------------------------- Quote from forex-forex: I was thinking $35.00 by June expiry, which will make those options worth about $5.00...

It's much easier to understand than his 'bible' (can be read in one night) but also covers the topic from a different angle. I enjoyed it tremendously. db

sigma is another term for standard deviation. 1 sigma is thus 1 sd (68% probability), 2 sigma is 2 sd's (95% probability). It is one of the inputs option pricing models use to arrive at their outputs. db

Mine was just a follow up to asap's comment - 'vega manufactures theta'. I think I answered your question in my previous long winded post albeit from a slightly different perspective than asap :). Strictly speaking the greeks aren't synthetic but we use the concept of volatility behaving a bit...

If I understand you correctly you want the following: 1. a set of options with zero or very small delta AND AT THE SAME TIME 2. the same set of options with large negative delta. So you thus want this set of options to have a delta of near zero and a delta of large negative magnitude...