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You`d better tell us what the final result is, not play games :D

I am working currently on them, actually ratio diagonals and it looks promising, however I need some violent movement to see how my adjustments will keep up with the madness :)

You just have killed me. I thought that what I was doing was my little secret :) Thanks

You can`t give up on this just like that with such RR ratio.

You can`t give up on this just like that with this RR ratio.

And then ? What if we had two brutal days like in October 05 ?

Coach, any specific defense strategy if market drops down ? (Not asking for details, but general idea). I am asking this question because I was doing far OTMs some time ago.

That is why you need more experience :)

If you comfortable with this position you may buy 12 Mar55, free up some margin, and - if you`re right, cash out some more profit. Such position might be converted again if things go wrong, but this is another story.

Arnie, yes - verticals are same month expiration, otherwise we call them diagonals

You just buy one more OTM e.g.: - you are short put65.. then you buy one put 60. Your total risk is strike difference (credit-60-55) and this position can be converted again, but first get comfortable with this technique.

Consider conversion into verticals in the last stage: - you limit your risk and unfreeze a lot of margin - you protect yourself against big moves, when options move more on deltas Good luck

Arnie, 1. I try to open my positions when vola is high, however I can`t always wait. 2. Regarding timing - depends what you do. If you sell theta, you`d better stay with theta curve, if you sell mostly gamma - your defense plan is the key. 3. Do not be mistaken about short results selling...

I have seen few times comparison to insurance, and have to say I like it. Options are financial insurances, aren`t they ? Then someone pays to insure his portfolio and seller must know how to run the business to not go down if he is obliged to pay compensation.

This happens a lot with verticals. They give you too many chances to escape from your position :)

Little surprising. I usually wait to let correction develop if not, I sell upside (call spreads).

I ran limo/airport services biz additionally, but it was headache. Then I moved to Eastern Europe, which is not brilliant place, but inexpensive. Since then I don`t have to deal with any junk business any more, so I can grow much faster.

Check http://www.hoadley.net/options It`s Excel based, but pretty good

I recently adjust verticals in upside moves by writing another call further OTM and writing ATM put for conversion of existing vertical into fly. Then I buy OTM put to establish vertical on upside moves and buy further OTM call on corrections. This brings you much better vertical entries...

Although it is not that exciting, I trade S&P and have to say that from contrarian point of view it is very attractive. Huge upside moves are rare, so to get protected on downside is usually good enough. What I`m still working on now, is to find the best conversions of verticals into...