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Do you subscribe to the "Buy Options when the $VIX is low, Sell Options when the $VIX is high" theory?

I only have this info. I'll let you and oldnemisis discuss it further. It seems you have issues... But would someone really just sit around and make this stuff up? Why? That gets into a weird areas..... :confused:

So I guess Put Master isn't correct about you're not actually trading? Thanks. Will check this out. :cool:

PM: I suggest you change your investment criteria. You are overly focused on risk/reward ratio, when you should be more focused on other criteria. Selling a spread 6 - 7 months out, with a mere 3% otm safety cushion, on a stock you can not possibly afford to buy, in an attempt to earn a...

Quote from Put Master: >>WRONG! First of all, you need to compare apples to apples. Thus, you would select the same contract date of Dec for the naked put. Which means you would earn a higher credit. Not less. Secondly,... you would not be able to sell as many contracts naked. Thus...

Looking at the SPY/SH chart. They totally mirror each other of course. How would you trade that? Do you sell a SPY Bull Put Spread and sell a SH Bear Call Spread? If so, that would still be a directional trade, no? You'd still only be betting on the SPY going up. How does you account...

Some interesting ideas here for me to look into. Thanks. :cool:

Do you find it difficult to find truly uncorrelated sectors? Back in May all the various sectors I was in went down together! As to hedging with inverse trades, one would be taking losses at the moment. How do you deal with that? Do you hold the bearish trades until the market falls later...

No comprende. How can I lose more than the $400 premium I paid for the Call? If it's OTM at Expiration it Expires Worthless, and that's the end of it.

Why? Can you go be a snide little Troll somewhere else please too? (Though you're probably the same person, right?) Thanks.

Why? Can you go be a snide little Troll somewhere else please? Thanks.

One of the great things about Options is you know exactly how much your Maximum Loss can be with every trade. You buy a Call for $400, and the most you can lose is $400. With a $20K account that trade risks 2% of your principal, and with a $10K account it risks 4% of your principal. But...

OK, let's assume all my trades are like this, there's a huge drawdown in December forcing me to take a Max Loss in every trade, and I lose 57% of my total account value. But if I sold Puts further out of the money over shorter periods of time, I'd probably only get credits of .25 per spread...

Very cool and very wise. Over the years I've been wiped out twice and really hurt another time by not paying attention to "Overall Risk", so I'm paying a lot more attention to it these days! :D Not sure I could do 10%, or computerize it, but will try some different % and see which one...

So with 1% Stops, you're only risking a total of 7-8% of your account value at one time?

If one uses a "% of Equity Stops" the chosen % can depend on your account size. If you have a $100K account you can use 1/2% Stops and still buy a $500 Call Option. Credit Spreads enable a trader with only a $2K account to use 3-4% Stops, because with a $100 Spread he only needs to risk...

I use Options as surrogates for stocks. Will buy a 6 month ITM Call with a real high Delta, instead of 100 shares. Is that what you mean?

Don't like the name much! But will check it out. Thanks. :)

Didn't know I was being intelligent. Just knowed it feels gooder than the other way! :D