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Spot on!

Forgive me if my response seemed inflammatory. Sometimes I focus so much on the details, that I forget to reread what I wrote to see if it comes off as civil discourse. Thanks for the reference to Kerry & Givens. I had not come across it before. This is the checklist I use for my index...

PoT is a proprietary metric available from ThinkOrSwim. I first became acquainted with it during the five months I paper traded before funding my account there.

The April 11 PCLN 490 PUT has a probability of touching (PoT) of 39% using the fixed volatility per expiration date volatility strategy. Not my comfort zone.

I only trade index options credit spreads because I am unwilling to expose myself to an individual compay's market gap risk, like the CEO taking a leave of absence for health reasons. I use a ToS metric called PoT (Probability of Touching) as my proxy for the chances I will have to close the...

It would seem that using a different option for each trade would avoid the rule. OTOH, perhaps I don't understand the concept of scalping.

Relying primarily on PoT and not market fundamentals or technical screening You are correct to a point. I'm uncertain how you would apply these methods to an index such as the RUT (2000 stocks) in a meaningful way. If you believe that the price of the underlying and the price of their...

Your observation is not limited to SPX and I had similar concerns when I began trading spreads. I had a conversation with ToS about this and here is what I learned. The Mark price is a synthetic calculation based on the Mark price of each of the legs.There may be a quoted Mark price for each...

falconview, what broker imposes this rule?

I am interested in what approaches that you followed that you now define as crap and what people you followed that you now define as charlatans. This might inform us all from your experience.

You may not understand the problem with the ToS margin calculation since your conclusion is not factual. Furthermore, your suspicions are not accurate with respect to what happened in March.

Consider thinking of the two credit spreads that make up the Iron Condor as your trading entity. This gives you more flexibility in understanding how to manage them to take advantage of opportunities and to avoid jeopardies. I don't recall if ToS makes it easy to separate the PUT spread from the...

You may if you can. :)

Great post. Thanks.

I trade index option credit spreads as a unit. The formation of an Iron Condor is an artifact to take advantage that the opposite spread can be placed without additional capital and places the position more nearly delta neutral. I got hit in March because I did not maintain sufficient cash in...

I report only on the isolated account devoted to trading index options credit spreads. Any discussion regarding my complete portfolio is outside of my reporting here and mentioned only in response to questions. I report my results in three ways, each aimed at communicating a different...

All of my reporting here is on one account devoted exclusively to trading credit spreads. Each bar in the graph represents the percentage change of this account for that month. If I started the month at 100K and I reported a 16% gain, the account would be at 116K at the end of the month.

Much of the speculation here is off target. I will post the details as soon as the bookkeeping is caught up. Your patience will be rewarded.

You are exactly right. Some of my spreads considerably exceeded my stop of 20% because I ran out of cash to buy them back. I'll report on a spread by spread basis as soon as I catch up on my bookkeeping, but the account performance was easy to report so I did so now to bring everyone up to date...

Thanks for the belly laugh. :D