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While searching through many possible complex strategies loading my imagination to the limits I found in 2002 edition of "Futures" magazine the interview with Max Ansbacher I have to say that if it did not strike me, it definitely enlarged my point of view. He just simply sells S&P OTM naked...

HD, so far I have been using three techniques: CovCalls, Backspreads and short OTM naked Puts (this last one combined with some AT, so it is more like trading system using options instead of buying underlying). It works like this: CovCalls are nice to cover possible losses for non-trending...

HD, after reviewing few possibilities I find conversions into Long Condor or Fly relatively the best, confronting indices behavior profile. The other techniques were: long OTM vertical Call spread combined with short Put Spread, short naked OTM Put (risky, but worth consideration), Long Call...

HD, thank you for interesting discussion. I agree that you should be prepared for adjusting your position but my belief is that other strategies you have used before were more flexible in long term run. I mean long OTM QQQ for example. Also, you have mentioned recently about using...

HD, sorry for delay in answering but I did not want to response too quickly. Now I can see whole picture from the distance, so this is the time to say something. You are now watching the same market action as I am - which is correction. You have bought back your 530 call for more what was...

HD, I have similar concerns towards the market, so I believe that what was yesterday is not absolutely indicative for the nearest future. I agree that once you set up rules to defend your position they should not be any changed during any market action. I personally work on them in...

Here we go. When I trade my dual flies I usually buy back my shorts when market moves and this really gives me big lesson of discipline. In case of today I was ready to protect my upper wing but trained by my experience have waited somewhat longer. Have to say that if you really want to be...

HD, I agree, however when the market moves up quickly, corrections are sometimes surprisingly dramatical as well, so building protective positions too soon can bring the exposure to additional risk too early. What is specific about indices that resistance level has been tested for a while...

HD, thank you for the explanation. Do you consider sometimes opening another IC i.e. by opening another spread upside (e.g. 550/560) when the market moves around your upper wing ? Also - looks like you open your defensive spread when the market moves towards upper wing - is there any...

I see, that`s why I didn`t know. But why Brazil ? Are there any other places to escape ?

ktm, thx for the advice, however I don`t know "Brazilian", can you explain ?

Mav, better late than never :) I am currently testing selling naked OTM puts S&P. Any ideas about defending such position if the market drops down dramatically ? Thx

HD, Oooops, sorry, but good to know. Also, if you don`t mind sharing - can you explain how do you cover ICs by converting them into long condors - do you stack them on the top of each other or something else ? While long bflies are understandable I am not sure whether I catch the idea...

HD, I have been doing similar researches for some time and I am about the same conclusions and actually thinking about using ES, OEFs and similar index related instruments to hedge my positions. I was also thinking about long LEAP strangles and few others. I am not surprised about your...

HD, I have been watching your ICs for a while and have to say that I am impressed of idea of defending such position by converting them into long butterflies but not very impressed of idea of buying them back. My studies show that many times the market reverses nad comes back. If you don`t...

Thanks again Mav, it was very helpful. However legging into straddles might be much easier than in flies or ICs due to lower delta at the edges of the wings, right ? Happens to me many times that OTM does not change or changes very little during whole session. I know that using your technique...

Mav, first, I prefer Mavmaster than Mavmeister :) referring to your technique - what do you do if the market moves while you are establishing spread position and one leg of the spread starts to run away ? Also, if you don`t mind sharing, how often it happens ? Regards

HD, Actually I might have used improper name, while Maverick explained this technique in details. The difference is, that with Dual IC e.g.: 490/500/520/530 and 500/510/530/540 you get additional possibility to make adjustments during market`s corrections. Two ATM wings of ICs will...

HD, looks like we are working on similar issues. I have tried some concepts for hedging neutral strategies with different results. One of them was short ETF/long ATM Call but not delta neutral, using different ratios, mostly about 1:2. To lower margin requirements I used SSFs, which are...

HD, while I am just doing my OEX research couple things took my attention: How was your previous year (if you don`t mind sharing) ? IMHO this year is much friendlier for range traders than last year, while in bearish market the breakouts are more dramatical and more common.