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Thanks for getting me thinking that way Murray :). I locked in a profit of 4.8% for the month (have my butterfly lottery ticket if we drop to 1350 at expiration, I think 1450 is more likely :p) . Would have been greater if I had gotten a fill on Monday to close out the diagonal but you can't...

Looking at the prices today I might be able to move the Dec into a butterfly and lock in a profit. Combined with my call diagonal I already closed I would be around 4% for the month. I can then look for Jan/Feb positions as my margin will be free.

I didn't look at doing that, just was trying to lock in some profit and move onto next month. I've been gone all day and this is my first look at the numbers for today, but I don't see how I could lock in a profit on the puts with a butterfly with current quotes. Maybe my tired mind is missing...

Update on my DD (never did get my pole stuck in there :p): Last Wednesday I closed my Dec 1450 calls/Jan 1475 calls for 1.30, a gain of .40 Today I am trying to close my Dec 1350 puts/Jan 1325 puts for a good profit but haven't gotten a fill yet.

Yes. Buying a call doesn't require margin, selling a straddle or spread does.

You can read this 2 part article and download the spreadsheet, should get you going in the right direction. http://www.fool.com/news/commentary/2005/commentary05071102.htm

You are not borrowing money when you sell an option. The margin is the amount of cash you need to have in your account to cover your max loss basically. Here is an example taken from thinkorswim.com: # How do I calculate the margin on a short call or short put? The margin requirement...

I took a point and a half on ER2 and was done by 10:30. Didn't want to risk having a position when the volume dried up.

OIH hanging around the bottom of a channel. A little late to sell a put spread for Dec, a little early for Jan though.

Still no fill on my tent pole. Need to prop up the DD in the middle somewhere. Try, try again on Monday.

If 1400ish is the settlement that would have been near max profit for my DD that I just closed the other day. With the market powering higher I couldn't take the chance. Still glad I got out when I did (ok, I really wish I got out the day before, would have been more profitable :p).

A vol spike, if juicy enough, may be hard to pass up for a quick profit :).

Jan 1455 calls aren't available in ToS, how did you get the graph? Did the software plug in a theo price? I do like the position though.

I was filled yesterday on a DD for Dec/Jan: Dec 1350/Jan 1325 puts Dec 1450/Jan 1475 calls No fill on the Dec 1390/Jan 1375 puts tent pole, will look again today and see what I like. I also bought a SPY call spread: Dec 140/141 to add "curvature" (am I using that term correctly? :D).

I have the 2min and 10min charts up for the ER2. Sometimes I trade the signal from one, sometimes the other. I need to make up my mind! I might just close the 2min and trade off the 10min only as this fits my style better.

He is talking about selling option credit speads on an index (like SPX, NDX or RUT). Not a risk free method by any means.

ER is flatline on the 10min chart for a while now. I don't enjoy sitting on my hands but it helps keep me out of trouble. I'm up a point today, may wrap it up and wait for tomorrow.

I was told at a ToS seminar once that MMs are very, very stingy during expiration week. Could something like that be at play with the fills today? I'm just speculating, I know Mark was a MM at one time so I'm sure he knows more than I about this.

Took a quick .5 scalp as the MACD shot higher through the zero line on the ER2 with the CPI numbers this morning. Will have to see how the setup is at the market open.

Mine is return on margin, I believe Mark and Murray do it the same way.