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Elitethink, you mean that if you went far enough OTM, for say a 3% profit, they would not consistenly expire worthless. Especially if you opened them on an upday? thanks Michael

Here is my strategy outline so far If VIX is lower than 20, use iron condors, if over that only use cal spreads, and if over 27.5 dont put on any positions. Wait for an up day to sell call spreads, down day for puts. Don't aim for more than 4% profit per position If market goes...

Falconview, I dont think I saw any non spread positions in the MCTO trades. Also, what about the idea of only doing the call spreads. I know we hear often about people getting wiped out doing this, and it is always on the sudden drops of the market. If we eliminate those sudden drops (or only...

Wayne, that is correct, only if you go far enough OTM, you will win way more than 60% of the time. this is assuming you are looking for returns less than 5% per month. The thing that worries me the most is that one time where you lose 90% of the capital. I have heard it a lot, but only on the...

doesn't that just show that if there are less downs than ups, but the net is down, the average of the downs is higher than the ups. Doesn't that make it safer to trade index call spreads only? I have heard many times about guys getting wiped out with spreads, but only on the sharp downs. Makes...

falconview, check out these stats you might find interesting. 10 years I believe of the SPY from expiration to expiration up down and by how much. http://www.elitetrader.com/vb/showthread.php?threadid=209832&perpage=6&pagenumber=4 Michael

Falconview, yes there are multiple positions, mainly RUT, OEX and SPY. As the month progresses, they alter the stike positions of new positions, close some and roll if necessary. So they dont just put on one at the beginning of the month and do nothing. Over the past couple of years they have...

Hi Falconview, somehow my forum reminder was not working, I thought you were not talking much these days! I guess I was wrong. This month I had to make some adjustments again in one account that I chose myself, but still up 3% if things expire worthless. The other account, where I trade...

Falconview, I have been doing many of them lately ndx spy rut oex iwm, just playing with many of them for now. The newsletters seem to mainly trade spy, rut, and oex. I thought you were out of spreads altogether now. Closer to you time zone, in Toronto Michael

Falconview, that is why you learn on the paper money. Learn from those mistakes and when we get a system down, we should print out the criteria, and have it posted up around the computer. Then read and follow it. If not we will all be in the belize rehab unit! Michael

Regalsecurities, Thanks, that is much more like it, Michael

TJ, I meant the key to not losing as much money when the market starts to go against you. So far the spreads are still working well. 4.7 and 4% for the two months, will let you know about this one (probabaly a llittle lower as I did some adjustments. Michael

Maybe a traders rehab home, inexpensive as most dont have much money left! Michael

Yes, those early adjustments are the key.

Falconview, what happened, did the heat get to you First example bought for 4.40, sold for 4.10 you tell me if you made money or not Second example, bought for 3.70 sold for 2.40, what about now? Had the interesting dinner with the fellow who was doing a lot of credit spreads (like...

falconview, I dont recall ever looking at further out numbers. If the return is higher, and you start one every month, the length of time really doesn't matter, does it? Michael

Falconview, now you are really thinking! This week I am sitting down with my firends patient who got me thinking about the whole index credit spread idea. I have read a few notes he wrote, but now I am ready to pick his brain on what he does. He has been doing this for many years, and actually...

looking forward to hearing how the real cash changes your way of thinking, if at all. Good man. I am not ready yet for any cash. Michael

falconview, so how ould you allocate funds for each trade if say you have $100,000 in your account to use? I know this is inportant part of cash management, need to learn more about it. Thanks Michael

Falconview, No kidding that was a great week. You should set up a document to start saving the totals. Will make it a lot easier to see if a few months the progress. I would love to see that. Michael