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An example: Say you have $10,000 in an account. Now you put on a 10-pt spread for $1 credit, 10 times (i.e. position size of 10 spreads). Your margin requirement is $10,000. Your credit is $1,000. Your account will be worth $11,000 if the spread expires worthless. Now say the...

I was watching a webcast on credit spreads a while back (from Dan Sheridan) and he suggested that one should make an adjustment/roll in two steps: 1) close the position (and take a day to clear your head), 2) put on the new spread. This confused me because the problem with a two step roll is...

JUN 1210/1225 for 1.00 looks good... Coach, whadya think?

JUN puts,.... I don't know Coach, might be playing with fire (sing the Johnny Cash song)...

Do you want fries with that?

What kinda strikes are you looking at for JUN?

Does Alaron have a platform for risk graphs and options analysis?

I agree with your message. Making a process more systematic (and therefore more measurable) can only lead to good things. If I had the time, I'd volunteer :( but I don't... perhaps someone can capture a table or spreadsheet with some benchmarks for credit spreads?

Rally, So you're saying that some benchmarks need to be established, such as 10-pt spread, 27 days to exp, 60 pts OTM,... should give $xyz credit?

Sorry, couldn't help it... now I guess the market is going to rally tomorrow.

I HAVE SOME GREAT NEWS! The Fed is close to being done raising rates.

piccon, I remember initially feeling the same way. Take the time to go through all the videos in the support section and then attend a TOS software class. One you're a little familiar with it, you'll love it. On that note, I gave IB's TWS my best shot... and ditched it.

I'm really beginning to wonder just how many times we can rally with the "almost done" story. Of course, they (and I'm not sure exactly who "they" are) have stepped it up -- now it's Yellin and Bernanke themselves who are selling the snake oil, direct to public...

OK, thanks. Looks like 10%-15% for 7 weeks or so.

rdemyan, I used to track Mike's Couch Potato for a short while but did not continue. I like the 7-weeks-out spreads too. How much does Mike typically collect in terms of %ROM?

spreader, when you have to roll, how often do you roll to the next month (and of course further away from the money)?

Before I put on my position I first determine how much I'm willing to lose if this trade goes wrong -- call it Max Loss. Then I look at the loss of the unhedged spread if the underlying is 5 points from my short strike. I look at this loss at two points in time: one week after putting on the...

Cash, nice summary. Care to comment on some of your risk management techniques (I'm assuming you do more than just put on a position and roll when it gets into trouble)?

I had to roll twice once -- it caused a loss (can't remember the amount) but it didn't kill the account or anything like that. In retrospect, I should have just got out of the way.

Things like..... martingale:eek: