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Suppose that your proposition is true. How would you trade to take advantage of it?

For myself, I never enter a trade without a plan for exiting. A plan for exiting profitably and a plan for controlling my losses if the trade goes against me. Option plays are particularly challenging for someone new to options. I'll leave it to others to recommend particular strategies as this...

First, I do not enter my OTM spreads "at the market." I always look at the overnight futures to inform my trade entry method. If the futures indicate a large market jump at opening and if I'll be at my trading desk, I'll wait for 30 minutes or so to decide on my spread trades. Under the same...

Are you trying to trade the noise?

Thanks

Without agreeing or disagreeing with you, I find categorical statement that are expected to be accepted without explanation (proof) or citation unhelpful for those just learning options trading. I've been at it for almost a year, and things I would write today are far more informed than what...

You might consider collecting these similar posts in one thread.

Why?

We are missing eudemon, mg, mr and atticus over at What's wrong with Iron Condors.

I'm interested on your take of what my errors were. Kindly elaborate. Regarding eudaemon's contention, ET does not provide a way to link to a specific post. The best I can do is give you the time stamp for his post in my thread: 05-04-11 09:17 AM, where he states and in a subsequent post

Read some of this thread to get the arguments against trading credit spreads and Iron Condors. I've got a dog in this hunt because I do trade credit spreads. However, those against it insist that in the long term there is no positive expectation. Even if 80% of the trades are successful, you...

Point me to a resource for such a proof.

Those that contend that trading credit spreads must eventually blow up may be correct. I just have not seen an explanation of this contention that I can understand. In fact, most just state it as though it were so obvious that anyone can see it without proof. I'm just not one of those so gifted...

Matter and energy are related precisely by an equation. Gamma and Theta have an approximate relationship per your reference. Even if they were precisely related as are matter and energy one prefers to talk energy in some circumstances and mass is others. Momentum (m*v) is easier to understand...

Bold statement. Make your case.

I am not up to speed on strangle analysis. Can you explain why you believe it is too cheap.

On reflection, I see that I was out of line. I apologize.

Sounds more like insurance than a hedge, although it is sometimes hard to tell the difference. :)