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History says you are wrong. In Oct, 1987, a time when VIX reached 150, option time premium was worth it's weight in platinum. That means the time spread portion of the posiiton would allow for recovery of a significant part of the loss. Mark

I disagree. It is ANYTHING but prudent to hold these positions through expiration. I tend to close all diagonals early. When I believe the profit is sufficient AND the risk of holding the position is high, I close and open a new position in a further month. That may not work for everone...

Curent XEO market is 0.65 to 1.50. I am offering at 80 cents and cannot get filled. That's pretty bad. Mark

I want to trade cash-settled, European exercise index options and want to open Oct-Sep diagonals now. I cannot find anything to trade with Oct options - any suggestions (besides XEO)? Mark

I have had zero luck getting any XEO spreads opened. How far from mid-points must you go to get them to trade? Mark

3rd Friday is traditional expiration. Other is 'end of month' expiration. Mark

No need to wait for webinars. You can listen to previous webinars on identical topic. http://www.interactivebrokers.com/en/general/education/priorWebinars.php?ib_entity=llc

I did not recommend this trade. Merely replied to question regarding ease and feasibility for a public customer to open position with extra protection.

Yes. Just buy extras. Example. Buy 50 butterflys or condors. Then buy 10 (or more) of the cheaper call and the cheaper put. You would now own 60 calls and puts and you would be short only 50 of each. You would lose that extra money most of the time, but a black swan would be most welcome...

I trade very small size in MID (did a 3-lot diagonal spread today). The markets are not as wide as SPX and the MMs usually give you a dime to 15 cents better fill than the screen quote - BUT - occasionally the markets become non-existant: (no bid - $5.00 ask), suggesting you might be in trouble...

This sounds wrong to me. If the underlying index continued to tank, you would be forced to close the calendar quickly (because the spread would go against you if the market tanked further) but the small profit earned from the calendar would do little to offset the loss from the credit...

You took out insurance to protect your portfolio. Insurance is expensive and that's all there is to it. If you prefer to follow your heart and gamble, rather than use your brain to insure your longevity in this business, then you will be probably go broke in no time. You made a good...

The maximum pain theory refers to the pain felt by option BUYERS, not SELLERS. Mark

Disagree. Max loss not yet locked in on a 100 point drop. You could easily cover this spread for FAR less than the max. And the higher the IV, the greater your chances to save a significant portion of the max loss. True the naked put is still far OTM, but with the expected HUGE IV...

Coach, I don't believe banked profits are relevant. That's like the blackjack player saying that he has taken his initial stake off the table and is playing with house money.' Once he has won the money, it belongs to the player, not the house.

One good reason is that Newton's first law applies here: "A body in motion tends to stay in motion, unless acted upon by an outside force." That means: Periods of low volatility tend to be followed by more periods of low volatility (same hold true for high volatility). thus, it is...

Thanks. Not looking for myself, but for someone else who wants to learn the basics.

To anyone: A friend asked me to recommend a few good books on Technical Analysis, and I am totally unfamiliar with the books in this area. Recommendations, please. Mark

I still find it next to impossible to trade SPX. I entered a Jul, 10-point put spread early in the day, asking for a credit of 55 cents. Later, the natural market became 30 cents bid; 1.30 offered, and they still did NOT take my offer. Pretty unbelievable. Mark