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So Maverick, basically what you're saying is: Gay Sex = Credit Spreads What options positions do you like? Besides credit spreads, I mean.

Maverick, Donna has said just about every which way, that she's MAKING MONEY. Your theories don't matter. Let it go already........

So you're saying: ..1) a debit spread and a credit spread are equivalent, the bank's loaning you the money up front in the case of a credit spread ..2) this game's expectancy is zero (negative actually, given spreads and commissions) ..3) it's a zero sum game So my question is...

Ditto..... look at Taleb...

rdemyan, I wanted to alert you to this, just in case -- for all 1256 type positions that are open at year end, you have to have them marked-to-market. In other words, you act as if you close those positions at year's end, and that's how you calculate your cap gain/loss on Form 6781. If...

Just how many times can the market rally based on the same old "we're almost done" line from the Fed... it's already been 4 times now...

These tidbits are much appreciated! Keep 'em coming....

It could have something to do with the amount of trades made...

I don't know. Also, take a look at Trade Accountant too.

rdemyan, Glad it worked out for you. By the way, I didn't have any 1256 trades in my OX account so I didn't see GK in action, separating equity versus 1256 trades. Was that an easy step? Easy to get 6781? On your 1256 trades, was 12/31/05 just marked-to-market (assuming you had open...

Donna, Nice move. I think you sold this just before the last woosh (SPX is now 1281). Am looking at 1330/1340 now... it is a bit closer than yours but I don't think a rally passed 1300 is in the cards any time soon.

rdemyan -- OX should have a green button called GainsKeeper under the Account/Tax Resources tab. Click on it and your Sched D will be done for you using GK, free of charge. It will generate a file that matches up all trades and you won't have to enter anything by hand.

rdemyan -- double check this, but I believe that if you traded options on SPX you need to apply Section 1256 rules (to your benefit)... this means using IRS Form 6781. Donna -- I assume you used Form 6781? Otherwise you might have paid too much capital gains.

Cache, Yes, my understanding is also that ETFs are not 1256... pity. A couple of questions/claifications: all 1256 instruments (futures, options on futures, cash settled indices, options on cash settled indices) get 1256 treatment (i.e. 60/40 goodness along with M2M)... and there is no...

Can someone suggest capital gains / Schedule D software, (GainsKeeper maybe?) which can differentiate Section 1256 type trades from equity trades and process them according to IRS 60/40 rules?

Coach (and everyone else), Now that tax season is (almost) over, I don't recall anyone posting about applying Section 1256 rules to SPX credit spreads... Does that mean that most folks paid the full short-term rate on their gains (instead of the advantageous 60%/40% rate)? How do you handle...

I've done 30 point ATM iron flies (regular, not time) on OEX. Not sure if the this time-fly is any better (aside from being +vega). Need to look at it closer.

Why? And how long would you hold? And exit rules?

I think Red Option calls this a straddle-strangle swap. Is this better than a 580 MAY/JUL calendar?

Rally, another nice post. Looks like the MACD has also crossed. (I don't look at RSI so much, but heavily use the NewHighs/NewLows and Advance/Decline indicators and they are telling the same story about divergence.)