Search results

Right. So essentially you have a situation where the risk:reward is minimal and if you are right the payoff is large, but you are just playing for the big move...Personally, I just try to avoid the front month with this little time till expiration...I don't like to be short with the risk that...

yeah, I definitely think that it's wise to close out positions in the final days prior to expiration, especially if the options you are net short are trading somewhere between .05-.20 cents and you have more risk by sitting on them waiting for them to expire worthless...Since the "envelope" of...

the worst part about it is the number of posts does not even reflect the true level of the addiction...After all, I don't post that often but I seem to always be logged onto this site...

I say it starts two minutes after the bond market closes and one day before the march options expiration....(make the connection)

A good topic for discussion...I do similar stuff with index options, and I have noticed quite a bit more discussion of this subject in the past month...There is no question that disciplined and selective index options writing coupled with some creative execution techniques can be a relatively...

the key, I have found, for selling strangles, especially on the indicies like SPX and OEX is to select strikes that are so far OTM that even if the market experiences a sudden 3-5% move, you are not going to have to go back in and cover with the illiquidity that sets in on these options series...

I think Robert Prechter will become a household name again

yes, I also skimmed parts of his latest book, Kingdom of Fear...He had some interesting perceptions about our current times and felt that the title of the book was the best description of what is now taking place in this country...He also has great historical perspective and I really enjoyed his...

I think that is probably the trend as well. We had a similar type of action last winter around march-april, when the VIX was declining steadily into the "teens" and everyone was suggesting that we were "mean reverting" as far as volatility goes back to the days in the early to mid 1990's. Then...

Times change very quickly. I can remember prior to Interactive Brokers in 1999, that you could not even get a discount on the e-mini's...brokers were still trying to feed the pits and you were basically stuck paying high teens for the full contract, if you were lucky or connected or did alot...

A few comments on this statement...Part of the reason why Toddo either successfully trades the indicies (or appears to) is because the majority of the time he appears to be scaling into options positions at different stages of each swing. For this reason, he most likely has less directional...

I can remember, less than twenty years ago, the teachers at the Catholic schools could be physically abusive without any real repurcussions...Throwing kids into lockers, pushing them around, verbally cursing them out at the top of their lungs in front of all the other students, etc, etc...It's...

This sounds like a great way for this Hoenig character to get his ugly mug back in the spotlight...

What dream world or fantasyland did you just wake from? Are you implying that you are doing index arbitrage off your pentium 4 in your apartment? Get real..

I say its Gordon Gekko...

"Credit" spreads have been hyped for years...Fishback, amongst others, were promoting these strategies years ago...Seems they disappeared for a few years and have made their way back into fashion...Most of those Active Trader Magazine articles are really amateurish...The material is so one sided...

Also, you cant really ignore the fact that trend trading (in the macro sense), which a 6 month time horizon consists of, you have to be able to endure the pullbacks, many of which will be very strong against trend moves on the micro time horizon...

that sounds like a "loaded" question...If the instructor defined the actual time horizon or strategy(micro vs macro trading) then I would think that it would be easier to categorize, or at least, focus on the more important factors...

why ask why? how many times do the markets just do whatever they want when someone important opens their mouth...