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How many extra wings would you buy?

Thanks for the input, RichardRimes. I have learned a lot from you on this and other posts. Again, thanks Torontoman

Yes. This helps. However, if I understand correctly, your explanation does not involve adjustments when the the SPX approaches a certain point. If adjustments are planned, doesn't the probability of profit increase. By adjustments, I mean closing the spread & getting a further OTM spread with...

Thanks for the input RichardRimes, but I don't understand. Could someone give me an example? Torontoman

YES. You're right. My error.

I think that you should paper-trade before you quit a well-paying job.

Perhaps I am naive. Let's say the SPX is at 1400 today and I want to create a 1465/1475 credit spread for .65. I plan to use strict risk management, for example rolling when my credit amount doubles or triples, or roll it out when the SPX goes to 1455. Remember these are puts, not calls, so...

Does anyone agree with jj90? It might be a good point!

My thinking here is that you would roll a higher quantity so that you can make up for the loss. You're rolling because the market moved fast against the position. Therefore, volatility increases. Therefore, I can get many more credit spreads way out-of-the-money because volatility is high...

Is my thinking wrong? Let's say I get a far out of the money bear call credit spread on an index, which expires in 6 weeks to two months time. I try to collect .65. For example, I get an 1470 1485 SPX credit spread for .65. As long as I am available to manage my risk, how can I lose...

Maverick is definitely correct when he says that stops do not work. Questions: 1. Is it easier to take off your spread at certain prices using index options? 2. When Maverick says to roll your shorts, would you roll a short that went from .30 to 4.00, would you roll that? How much...

Are there advantages to putting credit spreads on the S&P Futures vs CBOE S&P? My experience is that S&P futures options trades are not that efficient. I don't even know if I get a fill until the end of the day. You can't trade it online yet. But maybe it is still advantageous, I don't know...

You have a good point Ambushbilly.

Thanks everyone for your great posts! Any other comments would be appreciated.

Here are the details. BTW thanks in advance. last week, NTRI gapped up on earnings & guidance big time. It closed up 13.5 % to 49.79. The next day, it fell a bit, so SOLD the March 45 put for .90 and BOUGHT the march 40 put for .3. The bid/ask spread for both of them were the tightest. The...

Does anyone have any ideas on how to repair a credit spread when it's beginning to look bad? Thanks in advance, Torontoman

Whether it's SPX or SPY, it's the same. Just the multiples are different! Torontoman

Thank you for your reply Maverick. The 1490 Mar spx call sells for 2.00. The 149 Mar spy call sells for....Oh. I see what you mean. Out of the two, what would you suggest for credit spreads? Thanks Torontoman

Why are people selling spy options when spx options have better premiums? I must be missing something. Your comments would be appreciated. Thanks, Torontoman

I'm thinking of attending his seminar. Any comments? Thank you in advance, Torontoman