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Nick, Stress, profit, losses -- you're winning on stress and losses -- that's good. But your profits drop too? That's not good, how do you fix that? How about this: since you are putting on smaller positions, how about moving a little closer to the money and increasing the credit?

REDUCING RISK. I'd like some feedback on this techique to reduce spread risk. Say you have $100,000 to invest. Instead of putting it all one spread or iron condor, all in one day, how about doing 5 or 10 separate spreads over the course of two weeks? If the underlying stays totally flat...

Wow! I just found this calendar thread (thanks to gatorplease for setting it up and rdemyan for emailing me the link). I know what I'll be reading tomorrow!

I get A/D and other NYSE market internals from Reuters data source (I use Metastock charting software). Also the charting software in the TOS platform will show A/D,...

Thanks Murray! I'll take a look.

Does anyone here look at market internals? I do and I'm having a hard time believing that this "end of year" rally will continue because the Advance/Decline line has diverged from the index and the 52-wk high/low tells the same story.

SPX is pulling back today. If tomorrow's PPI causes a further drop I'll put on my main DEC put spread and use 15% of the credit to buy a 1250/1260 bull call spread for around $2.50.

Does anyone trade this way? With SPX=1230 do the following: - buy a put fly 1210/1220/1230 for $1.85 - buy a call fly 1240/1250/1260 for $1.05 and play the swings that are almost gauranteed to come up in the next few days/weeks.... haven't tried this but I think there is a technique...

2 Buck Chuck is great! I'm convinced the two main groups buying it are smart people and winos!

Donna, careful buying things at Costco! At least one study has shown that buying in bulk leads to overconsumption. Costco is such an American phenomenon just like SUVs... big, big, BIG. In Europe and Asia, people buy groceries each day while *walking* home. They don't have huge houses with giant...

I guess that doctor in Utah would have 3x the difficulty posting on this board on Sat night...

Rdemyan, Funny you mention this -- I'm taking a hard look at calendars and calenderized credit spreads (diagonals). Many people shy away from calendars because credit spreads/iron corndors are, on the surface, so much simpler, and because calendars have an element of the unknown (roll value)...

I'm very interested. Anyone else?

Coach, If you wanted to share the details of the CEFs you have, why you have them, how you choose them, what the returns have been,... I know we'd listen intently as we have with the credit spreads. :D

Coach, You said you only use a portion of your account for credit spreads (I think it was 50%). What do you do with the rest? Just leave it in t-bills or something more?

Well Donna, think about it. If you want to put on a hedge, you can wait till the market gives you no choice (the hedge will be expensive) or you can put on the hedge when you absolutely don't need it (much cheaper) like I did today. I have not backtested/compared the two approaches. It's quite...

I have heard from a reliable source that if you ask people charged with crimes such as theft, gambling related crimes, embezzlement,... they very often say that they had a recent large monetary loss and were committing the crime "just one time" to make up for the loss. The same dynamic is at...

Donna, the preemptive hedge used up 15% of the credit from the call spread. BWDIK -- but what do I know...

It's not a hedge... YET because I have not put on a put spread yet. I plan to put on a 1150/1160 or so in the next few days if/when the market dips, but you're right -- against my current position it's not hedging anything (maybe I should call it a preemptive hedge?).

I'm trying a slight variation for DEC. ENTRY: I sold a 1270/1280 call spread for $1.20 -- risky, but I halved the position size compared to the position size I would have used for a farther out spread. If I have to roll up, I have unused margin to increase the position size. EXIT: I'm...