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Atticus, I'm not "admonishing" the Greeks, many people find them useful tools. I don't, but that's just me. TV does not refer to "thoretical" value, but time value, that part of options premium that is OTM. The residual value of the two spreads is the combination of the MTM prices of all ITM...

Hi Traderlux, The out weekly strikes are now the quarterly options. Good luck, Josh Good trading to all

Well Atticus, besides using intemperate language, you are now engaged in an ad hominem attack on my intellect. If your reference to theta wasn't about the Greeks, what, pray tell was it? Don't bother replying to this post, you obviously have nothing relevant to say. Good trading to all, Josh

Yes Atticus, that's what I thought about your post, but I was too much of a gentleman to elucidate that analysis. Good trading to you, Josh

Hey Atticus, we're talking about a one week strategy here. An OTM strangle, as far away from the current index level as this one is, has a very low risk profile, even if it were naked. And, since the shorts are covered by the out week options at the same strikes, it's virtually risk free, Greeks...

Interesting comments to my initial post. FWIW, here are a few observations. In my exoerience, using the 'Greeks' to predict future movements is, like using the VIX, valueless. How's Greece doing in the world today? lol Sorry for the bad pun, but ivory tower analysis just doesn't cut it in the...

Hi Galvin, What do say that we take a look at the positions next Friday and see how the spreads turn out before jumping to a conclusion? Fair enough? Josh

Like the old Rolling Stones song, in SPX calendars time truly is on your side. A client of mine suggested a strategy that seems to work very well in the weekly options. Here's the gist of it. Sell a strangle with a 100 point range between top and bottom in the nearby strikes. Cover that with...

Hi Lowvol, Thanks for your comment. That's an interesting observation, for you're correct, over time virtually all of the net gain in the S & P has been in the Nov/Apr periods. A quick check of my stats reveals that the overall percentage of winning months in that period is 64.5%, or only a...

Hi folks, For those who have been following the progress of the long term GLD strategy I've been using, this is an update. When GLD hit 140 yesterday, I rolled up via a butterfly from a Jan 2012 135/140 bull put spread to a Jan 2012 140/145 bull put spread for a credit of 0.45. The beat goes...

Hi JJacks and Howard, Thanks for your postings. First, in replying to JJacks, please note that I have never stated, or even implied, that this strategy is some 'magic bullet' scheme that you can just bet and forget. To the contrary, my emphasis has been that it works well OVER TIME and it is...

Hi folks, For those who have been following the progress of the long term GLD strategy I've been using, this is an update. I'm currently in a Jan 1012 bull put spread at the 135/140 strikes. I rolled into it in December from the same strikes in the Jan 2011 contracts for a net credit of 0.80...

Hi Stanford, Just read up the thread on page 11. We had a 1280/1285 bull put spread in the Feb contracts, for a 2.30 credit. Josh

Hi Folks, Well, the bullish put vertical spread strategy clicked again in the February contracts. That marked the 77th winning month out of the last 122 cycles, encompassing the last decade plus two months, a success percentage of 63.1. We entered a new spread at the 1335/1340 strikes in the...

Hi Howard, OOOPS. Yes I meant February for the new spread. Just senility setting in I guess. Thanks for noticing.

Hi Folks, Well, the bullish put vertical spread strategy clicked again in the January contracts. That marked the 76th winning month out of the last 121 cycles, encompassing the last decade plus one month, a success percentage of 62.8. We entered a new spread at the 1280/1285 strikes in the...

This is an update for those who have followed the progress of the diagonal spread strategy I first posted in December. I initiated the strategy by entering a 5 contract diagonal spread in the GLD Feb/Jan put strikes at the Dec expiry, buying the 134's and selling the 135's for a debit of...

You've got it traderlux. My philosophy is that whenever you can roll to a better position for a credit, you're doing something right. lol Josh

Hi donnap, No, you have to look at earlier posts. Initially, I entered a Feb/Jan diagonal, buying the 134 and selling the 135 for a debit of 0.80. Today's trade was to close that spread at a credit of 1.02 (a profit of 0.22 less commissions) and roll up to a new spread at higher strikes. This...

cdowis, et al. Below are the recommendations and executions for the roll-up I mentioned in my previous post. Trading Recommendations - Sell a 5 time diagonal spread in the Feb/Jan GLD put strikes, selling the Feb 134's and buying the Jan 135's for a credit of 1.02, or better to close...