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Mark, Thanks for your explanation.

Mark, You was a MM and familiar with haircut. Why do you trade retail under reg-T and not prop with haircut now?

spinner has saved it in flipdrive. http://www.elitetrader.com/vb/showthread.php?s=&threadid=80880&perpage=6&pagenumber=12

If you don't want to lose the job, don't take any chance. If you don't mind losing it, go ahead.

Mav, Thanks for your time. Hope to have another one just for option trading soon.

IV, sorry to misinterpret your strategy. I just mentioned so they can search for the old discussion to get the idea why OTM is better than ITM.

Great! I have logged in. Hope ETers won't crash the paltalk server. Mav and Don, It seems that nobody hears me talk in the room. Can we talk there? I'll have my question here then. How do we choose a "good" prop firm as there are a lot of risks to join a "bad" one.

Phil, I think the method is similar to IV_Trader's "old" strategy. But Mav has pointed out during the discussion with IV_Trader that it is better to selling the OTM strangle instead of the ITM strangle. I am not going to elaborate on it, but you can do a search. If Mav would like to do a...

Paper fill and real fill are totally different. Commission is negotiable if you have volume. I don't like the cancellation fee in IB, so I am currently using TOS. I am going to set up another accouunt with IB and see how the software performs compared to TOS, and I will probably use IB for...

That is papertrade. It is hard to say which one is better (the worst case or the mid). I prefer to get filled at the worst case, and if I make profit with the worst case, it means I will make money when I trade real. When I trade real with TOS, I find it hard to get filled at mid.

I wonder if anyone has a model how IV might change with change in the underlying. Any model for spx? Any suggestions?

Why will you change your strategy to spreads? Before you started this journal, you mentioned that spreads are harder to adjust when compared to naked writings. With span margin, you get a higher leverage using naked than using spreads.

Mav, You mentioned in one et thread that a prop firm can help raising money setting up a hedge fund if you have a solid track record with the prop firm. What is the %age of solid track record traders got it? what do you mean by solid track record? and how long is the record? Can you...

RM, Do you mean that even if feb vol increases by 1000 bps, the vol of apr options will stay the same because the earning effect is actually priced into the option price?

segv, As I did similar portfolio with rut, I have found the risk profile (estimated by TOS) might not be accurate because of the volatility skew. For example, suppose rut goes down 10 points, the rvx increases by 1%, but my vol of long calls might go down because of the skew. The use of...

what do you mean by +/- delta? Do you mean delta is relatively small or you don't care about delta when you construct your portfolio?

bto feb/dec 680/740 @ -1.45 x 3

You meant 1394.31, right? The easiest way for TOS traders here is to get a quote for set. It will update it once it is available.

The delayed quote 1401.07 was actually yesterday's theoretical set. It has nothing to do with today's actual set. The set for today is 1394.31

Coach and others, I think you can use ToS for a good estimation of your risk profile, but it won't be able to give you the exact graph. Because the vol skew, 1. Assuming ATM vol doesn't change, and if price goes up, the otm call vol and otm put vol will both increase in value. 2. If...