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Hi Phil, Nice market correction today! I posted this on the other board but thought I'd post it here too: If you put on an SPX AUG05 1200/1210/1250/1260 IC on Friday 8/12/05, one week prior to expiration, the credit is $1.90, and the probability is around 75%. Maybe not a great trade...

Phil, "I bought 45 SPY AUG 126 Calls @ $0.45 ($2,025)." 1) Can you please walk us through how you came up with 45 contracts? 2) What is the tradeoff if you close the position right now instead of hedging with the SPY calls? 3) Why didn't you just buy 5 SPX calls instead of ~50 SPY...

You had mentioned (maybe in another message board) that you were looking into ICs on futures/futures options? Have you started that? I have heard that the latter has advantages over straight options but have not done the research yet...

Hi Phil, 1) Since SPX trades at such a high value, the overall commissions are substantially lower compared to doing the same ICs on SPY. I'm guessing this is the one and only reason you trade SPX instead of SPY? 2) Do you know of an index to trade the Dow Jones (besides DIA and DJX) which...

Phil, Makes a lot of sense. I understand your approach during sideways and uptrending markets. What about downtrending conditions? These can be vicious and can bounce to the upside on a dime -- do you stick with call spreads (essentially the opposite strategy of what you plan to use in the...

Phil, When you switch from ICs to put spreads as you are planning to do in the fall due to the possibility of a fall rally, what happens to your average returns (historically speaking)?

Phil, I understand your philosophy of keeping the money rolling forward in the 1st week of each month to the next month giving you 45 days to expiration -- you've explained it very clearly. I'm wondering what your thoughts are of using a portion of your capital (say 10%) for a...

Phil, Can you explain a little more your SPY hedge strategy? Why wouldn't you use SPX puts? "I first may be inclined to add SPY puts at 120 or 190 first if the 1225 support/former resistance is broken strongly."

Phil, Regarding the 1185/1175 put spread you just put on for $0.50, if the market continues in down the bullish path it's on, then fine. However, I'm hearing an increasing amount of "expert input" that the market is overextended and cycle analysis shows some major decline in August. Have you...

Phil, You mention several times in this thread that you don't want to give away all your secrets (although you have been quite generous so far, so thanks much). I'm wondering if the rest of your secrets are in your book? If not, can you suggest an alternative way to tap your grey matter to...