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Your trading profit.

Correct me if I am wrong. I thought both spx and spy has the same tax rate. They are not future products.

Yes, almost every broker gives you short interest, but the question is how much? I think prop firms give a better rate than a retail. You can get to .02 or less if you are a profitable trader. Search the prop forum.

I agree. I have been trading OIH naked puts and naked calls. (Sorry Coach, I am a big believer of premium collection, but I don't recommend it). Because of the high vol, you need to do a lot of adjustment. Recently I added credit spreads and diagonal for OIH. The success of premium...

Are there any prop firms charging commissions lower than IB for option and future? What are the pros and cons of joining prop for future and option traders?

If the firm has only prop trading and nothing else, they make $ from your commission. BTW most of the prop firms charge you commission higher than retail like IB unless you are proved profitable with large volume. I wonder if there are prop firms that charge you option commission lower...

Got it! What other good journals should be followed too?

How is it compared to "Options as a strategic investment"?

close the position for debit of 0.75. Net profit = 0.5 in one day.

Sorry, but you have so many edges!!! :)

CTM credit spread is good for short term reversal. For my spx FOTM credit put spread, it takes me a whole week to make $1.

Covered at a debit of 0.75. Net profit = 0.5. Not bad for one day gain :)

Thats true. Span is calculated based on the probability (or volatility). At "panic" time, volatility goes up, and so is the margin. You are likely to be forced to cover if you don't have enough cushion for the margin change. Using haircut, it is a lot safer.

Trying it yourself is the best way. I just did a pure diagonal yesterday. You need to have an opinion whether you are doing diagonal or credit spread. I think the market is very choppy and going nowhere before Fed meeting.

I am still using ameritrade as my option broker. I found many people use TOS or IB here. Can anyone tell me the difference? Currently I am looking to have streaming option quotes (Level II), and streaming greeks, and want to have a DDE link to excel. If I can get a historial IV for...

For haircut margin, the maintenance margin will change with the index level. Is it MTM? So we still need to have a cushion for the margin change.

If you opened the position when OIH was higher than 130, you need to wait till OIH goes to 150 to get a decent profit. Less than 10 point movement gives you very small profit esp when you consider you have to pay for 4 bid-ask spreads (over 20 cents already). If you are moderately bullish...

Are there any books that talk about selling options based on volatility skew, and how volatility changes with market condition?

The problem is we are very greedy. Thats why we trade.

Haha. What can I say? I made a mistake in my model, and I calculated the expected return using put option. but look at this thread http://www.elitetrader.com/vb/showthread.php?s=&threadid=63020. You can make $ with CTM credit spread. I believe credit spread is a directional play...