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Mo, Thanks for your explanation. It really helps. After I opened this trade, I looked at it carefully, and didn't like the return on margin. I don't think I will lose $ on this trade, but i might not get a good return with it. If call calendars and call diagonals have this unfavorable...

Mo, I might open this diagonal for a wrong reason then. I wasn't bullish. I thought the market would stop going up short-term. I wanted to look for a vertical call but the premium was not attractive b/c of the low IV. I then looked for a call diagonal. This one had a very small -ve delta...

Doesn't really like this one b/c it consumes too much of my margin. Multi-roll diagonal doesn't look that attractive if we consider the return on margin. Well, hard to say, i have to wait till i close the postion.

6% is really a good return. It means 100% a year (assume compounding)

Open RUT 740/800 sep/dec call diagonal at a debit of 2.3 to test the effect of multiple rolls

Lets see tomorrow if you are going to offer the drink again:p

Why did you close your 66 put calendar today?

Which one is better? Higher leverage or haircut margin? With haircut, you can trade more contracts without paying any interest. however if you use the firm's capital to get a higher leverage, you will be charged overnight interest. It seems to me that it is better to go with jbo for...

Since it is a prop firm, we don't get any protection for our account. Am I right? I like the idea of using the intraday leverage to leg in the short first.

If I join as an individual, I have to pay all the tax that is supposed to be distributed.

Mo, I got the info from volatilitypimp, but he said they provide favorable haircut margin. Leverage is provided for day trading only or you will charge a pretty high overnight interest. It is a pretty new firm (started in 2004) so I want to gather more info about it.

We have an investment club with only 1 active member (the one responsible for trading). Basically we have a pool of money already but We like to join a prop to increase our leverage. We are thinking of setting up a LP or LLC with pass-thru, so all profit will be taxed in the individual level...

Because most fund managers have no confidence that they will have any profit!

Anyone heard of simplex leverage trading? It is a prop firm without license. Is it legal? Their commission rate for option is only 0.5 per contract, and they use TOS front end.

Mo, Do you mean that a diagonal is best for neural market because of the faster time decay in the front month, and you use multiple credits to generate the profit? This perspective is different from vega bet as shown by Murray's diagonal. For neural markets, I think verticals probably...

Mo, I don't understand what you meant. Can you explain with an example? I have aug/sep put diagonal. How can I have multiple rolls? I opened rut aug/sep 650/630 put diagonal with a debit of 2.7. Can you use it as an example?

Coach and Murray, For diagonal, when the front month expires, do you normally close your position?

I think Coach got the aug/sep diagonal, and yours sep/oct diagonal. I have tried for the last week in the range from 2.7 to 2.9, but never got filled.

I did it all the time. It is a good way to hedge your positions esp when it is close to expiration.

No way to get filled at mid for RUT unless the market is moving against you. Yesterday I got filled @0.7 for 650/640 aug put and then the mid of the spread became 1.0 once it got filled. (The market dropped, and vol increased) The mid was 0.8 when I placed my order.