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Off topic, but: I was quoted in the Sunday NY Times; article in business section. http://www.nytimes.com/2007/01/28/business/yourmoney/28hedge.html Mark

Eric, When the market ralles my DD portfolio becomes delta negative. But only for awhile, as I own extra calls. (Sadly, I do not own extra puts to protect the downside.) I treat put and call positions differently and independentlly. For reasons explained below, I make no attempt to stay...

Your suggestion is not for everyone. In fact, I believe that almost no one can consistently predict market direction. I find that allowing the market to dictate my timing works very well. Instead of predicting which way the market will go, and instead of sitting on the sidelines waitiing...

When I am unfamiliar with something, I usually shrug and ignore it. But, this time I am willing to do some work. What is ER2? All I know is that it's a 'future' Are the options cash-settled, or do you get a position in the futures if assigned? Is there added risk to be short an option...

Sound efficient. But for the typical retail investor who does not get haircut treatment, the margin requirement would be huge (shorts considered to be naked). Mark

I think you missed the point. If the Dec 800 call is trading over $60, and you want to sell at $6.60, then I want to buy those Dec calls. Period. The spread I would do is not relevant, but I prefer not to buy June calls - April is my choice. I buy Apr and sell March. Strike selection...

I would take the other side just to buy the Dec 800 call @ 6.60!!! Mark

I'll gladly take the other side of your spread. Did you sell FEB (not dec) 800 call? Mark

You have bad data. Mark

It was sarcasm. It's nice to be making good money. it's nice to have confidence in your system. But a big ego tends to get crushed when playing the stock market. Just advising you to be careful. Mark

You can't be serious? If you know for sure, how come your positions are so small? Why don't you mortgage the house and sell call spreads? Or buy puts? Mark

To me, the answer is clearly: "yes". A broker who works the order can enter the crowd, see what other orders are present (including spreads), speak with and bargain with the market makers and has a reasonable chance to get a good fill for you. An electronic order just sits there. If...

Hi Murray, Well done. I love your fills and am quite jealous. Not only am I unable to get anywhere near MID, lately I cannot get anything done when I am entering orders thnat are only an incredible 10 - 15 cents better than the natural bid/ask! On which exchange are you using the...

Sorry, I have no idea what the rules are today. With those wide markets, they should guarantee 100-up, but they don't. Mark

Hi Piccon, In general a decent idea. In reality, not so good. First, you must set a time limit. After all, making that 1/3 (or 2/3) after one week is great, but if it takes 3 weeks you might want to reconsider. Second, in my opinion, one important factor in determining whether to...

If the market had run much higher, the call vertical (obviously) would have lost money. Question: How can owning the 790 time spread help you if the market runs through the 810 strike? It would just add to the loss. My conclusion: This calendar was not a hedge. It was a totally...

Option models do show SET risk. They do that by including that one extra day. Because SET is often a bigger than average move, options are pumped (trade at a higher IV) - just as they are just before an earnings announcement. Mark

Ok, I'll take the reply as being partially a jest. My answer to your question is: YES. I am absolutely willing to trade the potential for a big win for a good win today. And by doing so, I prevent that win from becoming a loss. I believe that 'the pigs get slaughtered' is very...

Hi Yip, How's this for a radical idea: Close when you are either satisfied with the profit or dissatisfied with the then current risk. Mark