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Just so I understand what you're saying - I wouldn't get filled mid market because of the large bid/ask spread, right?

I'm looking to hedge the volatility exposure on my SPY/IWM butterflies with VIX options. How liquid is this index? VIX is currently at 14.5. I want to buy an AUG4 call option at the strike price of 14. The bid/ask spread is 4.00/4.30. Open interest is at 71. Volume is at 83. Open interest and...

Part of it is attempting to achieve a certain ratio between delta and theta. It involves closing a position if the ratio becomes undesirable. If TOS's delta values are very far off or inaccurate, it becomes impossible to take the trade off at the right time, thus negatively impacting the trade...

Apparently the OptionVue people think that TOS is just being lazy and using a simplified model compared to theirs. It looks like you can change some settings in OptionsVue to make the deltas somewhat similar to those in TOS. According to them the default setting in OptionsVue is "actual delta...

It wasn't options on futures. If you've got the time you should check out the videos I posted in the two links.

They were in the RUT index.

The discrepancies are evidently material enough to drastically affect the profitability of certain strategies if you go by the TOS greeks instead of by OptionVue's, according to a certain online options teacher that posts his trades in videos. Makes me wonder if some brokers deliberately distort...

I find this disturbing. I like the TOS platform and was thinking about opening an account there until I discovered some online videos demonstrating how far off the deltas are compared to OptionsVue's 'true delta gamma' setting. The strategies I've been researching were based on OptionsVue's data...

I don't mean to disrespect anyone. More power to you if you can predict market direction with a high degree of accuracy. Price movement is so unpredictable that it would seem to take luck and a bit of wizardry to successfully trade directional strategies without some form of astute hedging...

I personally believe that trying to predict the direction of any market is the purview of insiders, amateurs or idiots. I've had my share of experience being both an amateur and an idiot with forex spot trying to predict direction. I now think that only market neutral strategies are worth...

Rather than looking at it as a bad trade, what about looking at it as a trade put on with relative neutrality in mind toward the market direction, since direction can rarely be predicted (and seems foolish to even try). One which you 'adjust' when necessary, removing or adding positions to...

Ok, these trading journals are beyond me. I want to stick to a relatively simple strategy on indices.

Thanks for your reply. I tried to access the links but they aren't working. Could you or Atticus post some working links to these articles?

I take that to mean don't sacrifice risk/reward ratio for a greater probability of winning the trade? Also why do you not like adjustments or rolls? A butterfly would seem to be an absurd position to consider buying if it's not to be adjusted during the life of the trade.

You have a reputation for being very knowledgeable. What strategy/strategies does a trader of your caliber prefer to regularly trade?

You're the only one who sounds like an idiot at this point. Do you have anything helpful to offer on the subject other than a rant?

Mostly, but the technique is somewhat more complicated. He (Locke) uses RUT with 50 pt wide spreads. I believe he puts on a new butterfly when the price of the underlying moves upward 20 points, and yet another when it moves another 20. I think he then 'rolls' the lowest butterfly up to the top...

Has anyone tried Locke's "Bearish Butterfly" strategy with any degree of success? I believe I can piece his technique together based on watching short videos he's posted on his adjustments without plunking down $500 to watch his videos. How about Dan Sheridan's calendar spread adjustment...

This may be a dumb question. I'll ask it anyway. I was fooling around on TOS with options on futures and noticed that that the calendar spread position I was messing around with on emini S&P did not change it's risk profile with changes in volatility. I'm sure it's absurd, but does this actually...

According to the garbage known as the pattern day trader rule, how are calendar spreads treated? Is simply opening a single calendar spread automatically counted toward the 3 day trades in 5 days allowance? How are closing orders treated? What would happen in the following scenario: Day 1- you...