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Mark, The answer lies in what the market offers you. I seem to trade opportunities when the market allows. So you answer your question... is tough. Yes.. next month out is nice for additional premium and FOTM positions... but you also have more time to be wrong in the trade. So it comes...

Mav is too busy monitoring margin! Hello Mav! See... no response. You need to be careful... though, he quietly observes... then WHAM... shoots you down out of the sky. I do wish he'd un-proprietary.. and reprioritize! He would be a real asset with his floor trading...

Obviously the Call Diagonal will ride out and profit from a black swan event (if placed with a credit)... but the Put diagonal would depend on how it was placed. Rally's sugggestion of buying the back month within the strike of selling the current month, would protect you in a Swan event, but...

If I missed someone... just let me know. Thanks for all the input. This is what makes this forum unique, educational, and interesting. Murray

The 1250 was part of an overall profit range produced by the 1250, 1225, and 1195. Without it... there was little proft between 1240-1260 range on the risk profile. The calls were at 1305 As it turne out... it was the big winner for the month. M~

Jeff, Well said... just let me add... that the volatility increase really does make a huge impact... HUGE! Which in turn, make for even a nicer profit. For reference, one of our traders closed his identical diagonals Thursday morning, by the close... it was a difference between 17K...

Any diagonal can be placed as a put or a credit... but when you really look at logical strikes.... (support and resistance) you'll find that the skew in the Puts favors a debit trade, and the calls a credit trade. If you choose to ratio the call side for further upside B.E., then it can be...

Rally, We looked at this type of diagonal also. It certainly has it's place. It's more intune with how you like to trade... ie, closer deviations to the mean. We are still backtesting and analyzing this type. Any additional info would be appreciated... M~

Mark, Interesting that you mentioned this.... we analyzed this extensively.... our final conclusion was... if you're playing Expected Return on trade position, then the Expected Value isn't attained until expiratoin. Moreover, the rate of change of profit to loss, occurs greatest...

Beautiful day on the water... not so good for the market. I'll do my best to answer the questions posted. If I miss one, please reinterate. We placed three Diagonals... which placed a large profit range from 1310 to 1170... all depending on the VIX. As volatility increaased ... so...

July/August Diagonals at Expiration, July 20, 2006 Well, Friday is going to be a sailing day... so here are the numbers upon close today. I'll use 'mid' for remaining values for reference sake. Positions were placed approximately when market was at 1265ish. SET will have some effect on one...

That's a great idea, although these positions were placed in a Retail Tradig account.... the naked stuff is 'forbidden' per say. I'll jot down the suggestion for the group as we transcend into non-retail margin accounts. I like the way you're thinking! Thanks for the idea.... Murray

Possible accounting nightmare? IB has book management within the advisors accounts. V-trader would be one single entity and a ton of book keeping.... but I guess outside third party software is available.... Have you gone through this decision process when dealing with your 'other'...

Phil, Our thoughts were to move IRA's to SPAN margin, and Cash accounts to 'Haircut'. With the haircut margin we could still trade cash index options.... volume and liquidity advantages? Your thoughts? Thanks. M~

Coach, As far as selling back month Premium against short term Month, is you are playing VEGA as you suggested, but you have a much longer time frame to be right in the trade, unlike month tomonth credit spreads. If you look at a chart of the VIX, history shows that most increases in VIX...

Was your Call diagonals losing money the past week with SPX falling and falling prior to yesterday's upday. But im guessing that the gains from your PUT diagonals were way more than what you were losing on the Call diagonals. Maybe you wouldn't be losing much with your calls during that time...

JDiagonal Dialog Update for Wednesday, July 20th ust returned from sailing all day... MISSED... . all the action. Some of you have questions as to how the diagonals did today. Well, diagonals enjoy volatility increase, (that didn't happen today). They also like to be near the short...

July/Auguest Diagonal Update by request: Current SPX Put Diagonal Positions as of Tuesday, July 18 S July 1195p - $7.50 Currently $1.30 B Aug 1175p - $9.70 Currently $6.70 July 1195p should expire worthless... profit about 22.5%, depending on the final Aug 1175p value S July...

Mo, Love the way you help people to think.... keep it up! M~