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It seems like this strategy piques your interest so here's another one. Not so frank though;

Going to chop around in a fairly narrow range (75-81 perhaps) until FOMC announcement, obviously. I am tempted to buy a break of 1381.75, with an immediate target of 1385, and then perhaps 1389 (less of a chance). However, if we break 1375 it would be a better sell.

Haha no, just an old nickname, I don't even recall the genesis of it. But maybe I should be [stoned], it might make me trade better.

No practical experience, it's just usually a pro strategy as the number of ULs in the book can get pretty big, but possible for a PA I guess. Atticus would be much more suitable to address this. In fact... http://www.elitetrader.com/vb/showthread.php?s=&threadid=241353

I don't think dispersion is applicable here. I believe his IWM trade is purely a directional play on the Russell 2000 index (p/l attributed solely to long delta). Besides dispersion trading isn't really suitable for a retail account, as margin reqs, and just the sheer number of positions can...

Both are long vega, so they are sensitive to changes in vol (both will lose if vol falls). Long straddles are suitable when you think the underlying will move significantly, or whip around enough to offset theta decay. Or when you predict that vol will rise. Backspreads have a similar...

Thanks. That churn between 76 and 81 was annoying, key is not to get chopped up.

"SEX WITH SHEEP It’s good. Give it a try one day."

Patience pays off.

Got my whoosh, out at 1373.

Still waiting for a downdraft, but it's having a hell of a time staying beneath the 76 level.

Sold to you.

Yeah, don't want to be around for a quick reversal. My initial thought was that the market would come in a little today, like to 1370 on the ES. So far I've been wrong (still short a few lots though).

Depends on how we finish today. Also, Fed may not ease as much as expected, given the better than expected PMI out today.

Short 1382; Target 1370 Will need to break 1376.50 first though

*Courtesy of FDAXHunter & NP Forum;

Was a play on vol, which has significantly softened since initiation of the trade. I should have taken it off on 7/26 prior to the rally, now getting short too many deltas. Hopefully I get a pullback, but will close out and reassess on any further rally.

+1 for Baird's Option Market Making As always Hull is the bible, I would also recommend Sinclair's "Option Trading" and "Volatility Trading," in that order.

Some current positions: From 7/13: Long NDX AUG 2500/2600/2700 Fly @ 30.00 From 7/25: Long RUT AUG 760/800/840 Fly @ 15.00 Today: Long ZB AUG4 152/150 Strangle @ 2"29

Agreed. Short 1379, target 1370.