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Rolling to a new spread closer to the underlying instrument price need not add any risk. That is because the same rules apply with respect to PoT and credit received. Since time has passed, all other things being equal, the same PoT will be closer to the underlying instrument price when the roll...

falconview, PoT is Probability of Touching, one of the columns in the Dashboard. All the rolling I do is in the same series. See IC #15 for examples of several rolls conducted in the same series. Reread my analysis of the one credit spread where I took the max loss. It is not a roll...

Yep.

Obviously, I was not clear. Let me try again. If, on the last day of trading, the PoT is greater than 10%, I will close the spread. Sometimes that yields a loss. So far, I have incurred a loss on a spread three times in the 66 spreads that have closed or expired. In these cases, the Iron...

Good Morning, Great question, as usual. :) I've been trading this strategy in a separate account for 5.5 months. And I have seen one side of my Iron Condor come close to being overrun on the short strike. I say "close" because when my loss exceeded 20% of my capital at risk, I bailed out...

18 JAN 2010 Trading Plan Opportunity - Takeoffs are optional Column: IC Spread #61 is unpaired. Opportunity to form an Iron Condor. Column: Spread P/L Spreads #50, #77, and #69 at more than 80% of capped profit. Within 5 days of expiration, no opportunity to roll. Future version of...

What options do I trade? I trade index options rather than stock options in order to minimize market gap risk. I prefer not to invest the necessary time required to monitor the cause of gaps that can be predicted such as earnings reports. I am most uncomfortable with gap risks I cannot predict...

I filled out the transfer request on the weekend. Called them Monday morning and we were done.

I only trade 15 to 20 spreads a month. I get good executions in terms of price and speed. How would I detect if I were subject to the problems you describe. What would you consider good commissions on options?

Thanks for the heads-up. I used RUT and NDX data, but I'll check to see if I have the same difficulties. I was using 2005 through 2009 data. I generally do my back-testing with a PHP application aimed at specific strategies. Sometimes I leave the data in CSV files, but usually I populate a...

I was satisfied with the data I obtained. It was for indexes from 2005 through 2009. I am a software engineer so I'm surprised that I don't understand your comment about tick data adding substantially to the software development difficulty. Would you explain that a bit?

Perhaps my experience will be helpful. I built a special purpose application in PHP which I ran on my workstation and on the server that hosts my web sites. The application was devoted to back-testing the trading of index options credit spreads and forming Iron Condors. I used a unique...

Sounds overdressed by my standards. :eek:

Maybe you would prefer the UK where a man found a discarded firearm in his yard, reported it and faced prison. Guilty: Paul Clarke faces at least five years in prison for handing in a discarded shotgun

My wife is a liberal. She initially opposed my decision to carry concealed. She is still as liberal as ever, but strongly supports my carrying now. She understands how it would destroy me if I had the skill but did not carry and that day came and I could do nothing to protect her. Among my...

Marines call the Navy just transportation. :D

Yes I do. But I prefer referencing sources that are based on competent research. This is a highly emotional subject for many. Furthermore it is highly political and therefore filled with research on par with that that supported global warming and vaccine caused autism. As a concealed carry...

Anecdotal but powerful. <object width="480" height="385"><param name="movie" value="http://www.youtube.com/v/M1u0Byq5Qis?fs=1&amp;hl=en_US"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed...

Quantity frequently has little to do with quality. A more respected resource is More Guns, Less Crime: Understanding Crime and Gun Control Laws (Studies in Law and Economics)

This study has well known and serious flaws. I'm disappointed that you cited it. A more respected resource is More Guns, Less Crime: Understanding Crime and Gun Control Laws (Studies in Law and Economics)