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My original cost on BMC was $1,800 for all three legs. I made $1,100 for my feb rolls, and $920 on mar rolls. I took a $300 debit for buying back my may 25 call. That leaves me short roughly $100 +commission of my original cost. Not as profitable as I originally thought, but I still expect to...

ntb, i wish you nothing but the best. good luck to you in all your trading endeavors.

thanks electric. I'm years away from such instruments, just curious. Hey ntb, no reason to resort to namecalling and hurting aspiring traders feelings.:( Why am i dumb, because I'm curious about advanced concepts? Thanks for your support.

Electric. Do you trade any exotics in the Forex market? Double-touch, no touch, compounds? Or what would you recommend spreading on Fed funds futures and can you do synthetic exotics to capture expected Fed movement?

"I am god." Hey, Caligula said the same thing. We all know how that ended.:D

lol. puhlease mo, u r one of the brightest cats on this website, feel free to critique and add anything on this thread.:) I rolled my BMC software tri-calendar spread. I closed out the 25 call strikes altogether, resulting position a double calendar 20 put cal & 22.50 call cal. ratioed 7:5...

Good luck getting filled on your Sears position. I bot the BDK 80 put calendar (mar/may)ratioed 6:5 to represent a slightly bearish tint. I bot a mar/may AIG 65 put calendar. Good Trading!

Thanks for the input mo:)

Soros is doing nothing more than GARCH modelling within gaussian parameters, my guess running monte carlo's to verify the dataset(oil), and univariate returns. I would be more interested in creating algorithms for gold, on an exponential auto-regressive conditional heteroscedasticity for...

Yes, do tell the greatness of it. There are 2 schools of thought regarding selling extreme front month IV skew. I'm of the opinion if your front month carries +25% vols(as in your W.R. Grace cal. in your example) you are almost certain of a big delta move. Obviously, you do earn bigger initial...

Donna, Is that you talking or your inner 'Tim the 'Tool man' Taylor talking? OK, I was neutral, now I'm jonesin' for a synthetic put ratio backspread. Quick, all you aspiring or ex-floor traders out there, how does one accomplish the aforementioned from a mar/may 85 call cal.?:confused:

Another position. Black & Decker. BDK. Bot the May 85 call, sold the Mar 85 call. I may buy the 80 put cal. if current underlying trend continues. I will update any adjustments. Good Trading.

I put on a new calendar today. AMBAC Financial Group.( ABK) The implied volatility looks 'overvalued' compared to historical volty over a 52wk period, past IV action looks really stable and passes my under 30 IV guideline. By 'overvalued' I mean historical volty resides beneath implied volty...

I'm with Bono. As an options trader, BB's are an invaluable tool for volatility breakouts when the bands are contracting. I'll buy straddles all day long when the bands are constricted. I use BB's in conjunction with HV/IV skew, and IV range over various periods as well.

I would be happy to go over this type of spread. It's basically a time spread with three, four or sometimes even five different strike's, usually consisting of both puts and calls, and some of the strike's can be ratioed as well(to help the p&l graph). What this does is give the underlying a...

Donna, There are 2 ways calendars lose $$$. First is large directional move in underlying. Second is implied volatility coming down. Since you are 'long premium' (pay more for far month option than you bring in for front month option), your longs get hurt more. That's why im leery about...

Donna, in general I like to use call calendars because they are generally more liquid than puts. Unless, the call cal. is slightly ITM, then I look to use the put cal which is slightly OTM. I feel this helps me lesson assignment risk.

Lol! Love the 'paint dry' comment. It's like the pro golfer. Instead of hitting the ball a bazillion yards and up under trees and hazards, the guy on t.v. is soooo boring, hitting the ball down the middle every time, middle of the green. zzzzzzz, yet those are the guys on t.v., and the best in...

I see what u mean donna about your greeks, forget that last post. I'm not sure why my gamma exposure is much greater than your example. I see you're earning decent theta w/o a large gamma exposure. I'm afraid greek is not my native tongue, I'm polish for cryin' out loud:D

Donna, In order to earn time premium (+positive theta) there is always a tradeoff in the wonderful world of options. I'm earning roughly 30 bucks a day for sitting on my rear-end. The tradeoff is gamma exposure. I typically like to roll short options about a week before expiry because gamma...