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Coach, what do you think about this one ? Buy 1180 put $10.2 Sell 1175 put $2.3 My rational is to used this as a hedge and still has good +theta. Detal -13.02 gamma -0.32 theta 19.14 vega 56.38

http://www.gladwell.com/2002/2002_04_29_a_blowingup.htm This guy blew up the whole account because of selling naked OTM put on SPX with high probability of winning but low return. The risk is real. We are doing something different. At least we are not naked and did not commit the...

They are real at Think or Swim. I was looking at $3000 option courses. Then, Michael Catolico who posted at yahoo option club exaplained to me 4 important things 1. I don't have edge in selling premium or buying premium. 2. Each trade is a negative expectancy but I can build positive...

Sold 550/560 call credit spread today for $4.50. I should have done 555/565 instead when the index was 553 but I was too greedy. Summary: Now I have 530/550/560 unbalance IB. I hope I can trade on this position.

10/25/05 Bought back 540 put for $3.3. Made 6.1 - 3.3 = $2.8. XEO drops more so I sold 550 at the end of the day for $5.7. Now I have 530/550 credit put spread. As for expectancy, I've positive expectancy after adjustments. I got $2.8 credit extra. Still looking to sell call...

Could you please explain what this mean ? I though when you put on a trade, you already have negative expectancy due to commissions and slippage. Since ATM credit spread has short side ATM and long OTM, would it fit this criteria ? Thanks

10/20/05 XEO was around 543. I opened 1 540/530 Nov put spread for $2.4. I'm waiting to sell call spread next week.

Summary for October XEO result: Start with loss on 1 570/555 put credit $3.5 Sold 1 IC 545/560/565/580 for credit $7.25 Bought back IC for debit $4.55 Sold 1 IB 535/550/565 for $4.20 Bought back IB for debit $2.95 Total -$3.5 + 7.25 - 4.55 + 4.2 - 2.95 = $0.45. After...

10/21/05 Now I have to deal with IB 535/550/565. I legged out by bought back 550 call first for 0.15 and bought back 550/535 put back for $2.8. It was a stressful day and I was lucky to get out of this one for the profit of 4.2 - 2.8 - 0.15 = $1.35

10/20/05 Buy back 560/545 put spread for $4.4 by leggin in. I sold this one for $2 so there is $2.4 lost here.

10/18/05 The index was around 550. Sold OCT IB 535/550/565 for credit $4.2. I'm not so sure if this is the right thing to do since 10/21/05 will be the expiration date. If you think that I was crazy to do this, please let me know.

10/14/05 Buy back 565/580 call 0.15. I sold it for 4.5 credit so I make 4.35 on this one. However, the 560/545 put did not do so good. The index was around 546.

Riskarb, I appreciate your comment here very much. Could you please explain or point me where can I read the definition of "curvature" ? Is it the same as gamma ? Thanks, -Nick

Here is result of my OCT spread trade. I used about $7000 cash on TOS platform. I losted $265 not including commisions. On OX platform, I used about $22000 and make $40. However, after commissions, I losted $147. I rolled down some of my short at 1180, 1175, 1170. On IB platform, I...

I'll probably brake even. I had some 1175 that was rolled down to 1165. I read and was told not to establish one full position at once. That's why it came out like that. I'll reduce the number of contracts more next month.

I have couple of contracts on the short side of 1165, 1160, 1155, 1140 for Oct. For nov, I have 1160, 1150 and some spy put credit spread opened ATM 116/118, 117/119.

Thanks for the answer. Let's say I'm not decent at picking tops and bottoms at all (which is true). I plan to go by statisticcal approach and wait for big abnormal move to put on bull put or bear call spread ATM. If the indexed move down fast and move up fast, I could end up with Iron...

Mav, I have been trying to develop this strategy on selling ATM put credit when there is a large down move like last week. So far I have tried on spy instead of spx so I can practice small amount of contracts. I aimed for largest reward and limit my position size. Is there anything else I...

In OX, they won't let you roll down your position using butterfly. However, you can call the trade desk and asked them to do butterfly for you. That's what I did for a spread I had with OX.

I had to roll 1175/1165 down to 1165/1155. I compared the slippage using 2 trades VS 1 butterfly. I found that butterfly was cheaper. In your case you can buy 'fly put 1140/1150/1160. When I did the adjustment on TOS, it caused me $1.40. If I were to do it as separate trade, it would...