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I found this ET thread about the benefits of ES options over SPX options to be quite interesting reading (for after the expiration exhaustion!). I'm sure Phil's techniques work just as well with ES options. http://www.elitetrader.com/vb/showthread.php?s=&postid=856400#post856400

Gatorplease, you did EXACTLY what you were supposed to do. How would you feel if you had not closed out and then a few hours later, found out that the whole position was worth.... ZERO? Capital preservation is JOB #1. It is painful to look at the lost profit and think "I could have made...

Almost a 20 point swing in one day... impressive!

I think a lot of traders are going to go short in the 1195 to 1200 area...

Yep, still short the 1200 strikes. Got in for $1.10, can get out for $0.40 now.... assuming greed has not gotten a hold of me. I was much more worried about the 1165.....

rdemyan, When you have bought back for 0.05 close to the close of market on Thursday, how close was the SPX to the short strike?

Phil/Nick/... How close is SPX to your to your short strikes? Are you going to hold till expiration? I think that has quite a bit of risk given that sometimes the market close on Thursday can be 20 point away from SET?

Nice bounce at 1170. Now setting up for a rally.

You can read more about riskarb's double butterflies here: http://www.kaininito.com/options/articles/ The problem with these is that right now, with such low vol, the middle of the double fly dips below the zero line....

Phil, back to 1178. We might test the week's low at 1168 between now and exp, but hopefully this evening's earning should boost the market a bit tomorrow... rough month!

Feels like a bunch of formula 1 drivers are telling me (the average retail driver) how to drive my Fiat. My car uses regular gas, has skinny tires, a 4-speed that grinds....

Hey Jet!!!! With a statement like that, you now have to share your "adjustment to his style"... :) :cool: :D

Choad, Thank you for the great posts. Actually, several professional traders I've come across have the same opinion as you about low reward/risk credit spreads. However, I have not yet found another strategy that has a high return as this one.

Bingo! I think it would be very constructive if we came up with a set of market conditions conducive to credit spreads and another set of conditions labelled "avoid spreads at all costs".

Choad, Thanks for digging up the data. I think there are two take-aways (for me, anyway): 1) There is a time for credit spreads, and a time when they shouldn't be used. In these lower vol times (vol is in the teens), they work with relatively fewer surprises. 2) 5% on a 1200 SPX is 60...

There's a video on the CBOE website by Dan Sheridan -- he says the best times to get filled are 9:45am-10:30am and 2:30pm-2:45pm CST.

Jet, we're lucky to have your input on this thread. And thank you for not taking a condescending tone given that most of us are retail traders and you have floor trader experience. At the end of the day, the type of trading you've described is completely irrelevant to the retail trader...

Jet, you've hit the nail on the head. There is quite a difference in the way a floor trader trades and how a retail trader must trade to be successful. I believe the notion of "edge" is non-existent for the retail trader. I just shake my head when fools like Maverick spout off... and it makes a...

For the record, I have PMed Coach Phil several times. He has never, ever solicited any type of "service" or "mentorship" in any way. He does not push his book on this thread. So what's really going on here? Sounds like Maverick and Jackbird are tag-teaming this thread. Who loses from the...

It works! Ahhh, simplicity..... :)