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Spin, was actually refering to moving the profitable strike not 1 strike in but all the way ITM so that your right in the profit area near expiry. It lets you allow the strangle to try and make its full profit potential and if gets past your short strike you are in a winning position once more...

thx spin. makes sense.

...sorry but I'm bringing it back from the dead for some clarification as this repair strategy never gets discussed. IF you have an OTM short strangle on and lets say your short call is breached as you are approaching expiration. Would it make sense to just roll up your short put so that...

Ofcourse you can. Can you play baseball in the street Yes Can you play with the pros if you know how to hit a ball?? A little bit of knowledge is a dangerous thing.

I traded ICs, butterflies and the like for many years on very liquid ETFs with very average results, it really didn't matter what adjustment was made if a big move occured. What I like about short strangles on low priced stocks with good liquidity and reasonable OI is that not only can you...

thanks for the sound advice. Im comfortable with options but not VIX so note taken.

Thanks guys for the replies. I have a strategy that I have been testing for quite sometime which involves making adjustments at certain levels, however I like having additional protection in case the unthinkable happens. Would VIX calls or somekind of VIX spread work?

I've been watching the XLP and although there doesn't seem to be alot of options action I was willing to consider it for my strategy, however I have since discovered the margins for strangles are much higher than that of stocks. I also got my hands on a screener so I was able to filter it...

Ok.. so the consumer staples ETF (XLP) seems to fit my criteria the best, there isn't much volume to speak of but lots of OI across many strikes. I'm dubious about being able to get in and out of positions with such low liquidity, is that a legitimate concern when the bi/ask spreads seem...

Thanks for the two links, they both look quite interesting. I've been looking at the utilities and consumer staples ETFs as they both seem to fit my criteria except that there doesn't seem to be alot of liquidity. Individual stocks from both sectors might have to do, thanks again.

not if your willing to dynamically hedge as you go.

I can see it and it makes so much sense. Another way to explain it could be: your simply taking off the winning branch (lets say it's the long one) when you think it's ready to go against you thus locking in the profit then as it goes down you can buy back the losing side even if it hasn't...

I'm looking for a bunch of stocks that have low vol and are low priced which will stay in a range so I can apply a short strangle strategy on them. If they are uncorrelated from different sectors than some will perform better than others as the market moves, but overall they all need to survive...

I didn't ask whether it would work or not just looking for assistance with a screener of some sort. thanks for the link eventhough it doesn't seem to work

Thats correct. The more uncorrelated the better and preferably from different asset classes, however they all need to be able to handle a market fall. Any takers?

Ok.. I'll try and be clearer with my question. What I'm after is somekind of screener that allows me to filter through every stock currently trading on the US market (low priced ETFs included), so I can then determine which ones are better suited to this strategy. I would prefer an ETF...

your knowledge and wisdon is astounding, keep at it.

How can I go about finding as many different stocks as possible to use for a short strangle strategy, my broker doesn't have a sufficient screener. I'm looking for stocks that can all offset each other from dramatic moves in the market.

I have a friend is does auditing for type of thing and says depending on your strategy you need anywhere from 6 months to 3 years track record on a clean account. His auditing company charges tens of thousands for the pleasure.

anyone thinking about it should watch this http://www.financedocumentaries.com/