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Chris, You point is well taken; however, a long naked position is at risk to the Greeks. For example, with a long naked position, if the implied volatility drops, then you're short vega in addition to being short theta. Depending on how far otm you entered your position, gamma & delta...

Mark, Thanks for the referral to your blog. How many strikes otm do you place your IC, especially for a volatile index such as the RUT? Thanks, Walt

Happy New Year Andy... I trust that you had a good holiday. I wanted to wait until after the holiday season to send you a post. When you said that "the result was about 20 R (20 times the risk) in 2008", does this mean that if you were risking $10k per month, then the profit would have been...

I'm considering attending the 3-day training seminar with Bright Trading... Do you guys make a full-time income (i.e. 100k+ per yr) from Opening Orders trading? Thanks, Walt

What I'm saying is that although today's price is about $40, a July's contract is above $50. So the question is not "do you think oil will be above today's prices in six months?", but "do you think oil be be above $50 in six months?" Walt

How do you manage the contango effect? The contract prices for several months from now is about 40% - 50% higher than today's price. Buying at today's price is not very effective, as the rollover to the new contract will cause major gap-ups. Walt

Also, which technique was more successful this year: (1) opening orders; (2) MOC; (3) pairs trading... Thanks, Walt

Hi Don, Would you mind doing a mthly or year-end summary on this technique. For example, beginning & ending account balance; return on capital for the year; number of wins & losses. Thanks & Have a Safe & Happy New Year... Walt

Hi Mark, I posted the following question on another thread; however, I think it would be more appropriate on this thread. My question is.... which do you believe has a better risk/reward probability potential: (a) iron condor or (b) calendar strangle? thanks, Walt

Mark, which do you believe has a better risk/reward potential: (a) iron condor or (b) calendar strangle? thanks, Walt

Has anyone considered entering into a calendar spread; thereafter, at or near the expiration of the front month leg enter a short vertical position in the back month? The other option is a calendar strangle? Walt

A directional bias using bull call spreads or bear put spreads or calendars.... all having a positive r/r ratio and used with fundamentals... K.I.S.S. Walt

Hi Don, Do you plan to journey to the Atlanta area anytime soon? Walt

Thanks Don, I guess that if I were to venture into pairs trading, I would need to join a prop firm such as yours in order to get the needed leverage for this to be a worthwhile strategy for me. Between pairs trading and the open orders strategy, which is more reliable/profitable for you...

thanks Don & Dareminator... Instead of stocks, I've been considering pair trading on the ETFs that corresponds with the indicies (such as DIA vs. SPY)... I'm surprised that you find intramarket calendar spreads on futures to be more volatile (i.e. larger drawdowns)... It seems to me that...

Which is more profitable & less risky, pair trading of stocks or intramarket calendar spreads on futures? I've been studying the latter for quite a while. I'm not very comfortable with stock pair trading. How has your experience been with it? Walt

Hi Andy, Are you still experiencing returns on capital of about 10% - 15% per month, or has it declinced in this volatile market? thanks, Walt

Has anyone taken note of the correlation between the calendar spread on the ES in relation to the VIX? I'm aware of the inverse correlation between the VIX and the S&P; however, I was hoping that a similar correlation existed with the ES & VIX. Thanks, Walt

thanks for your replies... Currently, it seems that e-signal is my best bet for futures spread charting; however, it's quite expensive (about $140 - $300 per month, depending on applications and features). Walt

Does QT allow for spread charting on futures/commodities? thanks, Walt