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Well I´m spending a lot of time between trades lately. So decided this morning after reading Howard´s summary for January options, to give it a whirl again. Can´t make head nor tail out of his reasoning, or lack thereof. So looking at 60 day, or March options I sold a PUT spread for...

Howard I took a look at the colored work sheet. I get glimmerings of the odd thing from it. But mostly it fits your mind set. I don´t translate the information showed into anything concrete and useful to me. I got more from your monthly summation.

Howard I´m getting more out of your January summation, than I get out of your worksheet. ( I printed it out. ) Average loss per spread is 9.3% Average loss per iron condor is 20.3% 1) Now, how are you choosing when to close a losing a credit spread? I presume it has...

Howard I´m still trying to figure out what you are doing? You have a lot of people interested. Whether it will work in different market environments, we can only wait and see. Still I do not understand what you are doing? 1) Basically I get you are constantly invested? 2) You...

Howard A little tidbit from one years experience but a lot of trades in weeklies compared to slower monthly trades. Thursday and Friday of expiration week, 3% deviation covers BEAR CALL SPREADS and 4% deviation covers Bull Put Spreads fine. So if your spreads on a Thursday outside of...

Howard I think OPTION COACH had mentioned it. IRON CONDORS really only work with reliability in a bull market, with VIX in his case below VIX 20 and in my estimation below VIX 22. When you are in a bull trend as you are now with VIX 15 your Iron condors should work well. But you are...

My own thoughts on credit spread trading after a year of doing them. Is that they have a place in trading. The place though is limited. Essentially, credit spreads are directional plays and if you can forecast the direction that good, then you should probably trade short term options in a...

Howard you are welcome! In the meantime the market is dead this morning and I have been teaching a trading apprentice on a 3 month learning tutorial to help me trade later this year.

AMMO You said a mouthful there. I certainly agree that legging in, with a directional play is the way to go. The idea there are 3 trends a month was a good one, though I only play the idea of that in straight option buying, on the assumption there will be only, one or two. There probably...

I just noticed the extra tidbits. ( contributions ) From my year of weekly trading, the Option Coach has it right in my opinion. Strike selection and risk management are ALL. What Howard is throwing into the mix is rollovers. However, it seems that if you close a spread that is...

For the amateur, asking about selling volatility. Howard seems to be entering spreads with Delta of 16%? The volatility is automatic and instinctive, not needing calculation. You simply sell into an index as it closes on where you want your spread, the volatlility automatically rises and...

Hmmmph!!! What then is your POT rule for resetting the spread?

Howard Okay I catch your reference now on POT, probability of touching. You talk of rolling over in the same series and doing it two or three times. If you are trading 2 month out options I can certainly see where that would be possible, presuming you are rolling over into the same second...

Howard You are still losing me? If you have an Iron Condor and one side is closed as it is threatened and loses something. ( e.g. -20% ) The other side is rolled, even presuming full profit of 3%. Both sides in that Iron Condor would normally come to +6% profit, give or take some...

Howard I didn´t get the situation in which you were worried about a GAP, or the comment about the spread expiring worthless. Meaning I presume you closed it because it lost 20% of capital of the trade ? I can guess the increase of the good side of the IC would be more than the 20%...

Howard That does enlighten me a bit. If one side of your Iron Condor loses 20% of the trade capital you close it and take the loss. At the same time, then such index movement would also make the plus money spread in the Iron Condor, probably reach 80% or better of cap maximum, so you roll...

Morning Howard ( Tuesday morning ) Over the weekend I was looking at the P&F chart and counted four times in 2010 that we had a 60 point move in the OEX. Which is basically a 20% deviation. I would think credit spreads in an Iron Condor would have got hit. In turn this made me curious...

Looks like a dead day in the market again. Was studying the ROSS HOOK last couple of nights and wondered if it was similar to the Auxillou Hook, or Cambridge Hook of ancient times. Ross has been around 30 to 40 years that I remember. I can´t figure why a guy who is a long term trader and...

Howard Okay I´ll ask. What does the yellow color mean again? How do you get a negative return and not be in danger?

Howard Cute picture! Too true in my own experience. Still you have me mystified on how you are deciding when to rollover on a 60 day credit spread. I haven´t got into it, just waiting for your simplied explanation. i can´t follow some of your charts. Certainly not figure out the...