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Hi, Before I could respond, Coach has stated it very well for me. Fat gamma/chealp gamma is not the issue here. The CTM spread will become almost a total loss before the 740/730 spread is theatened. That's all I meant to say. The CTM spread will lose big time (from this point forward)...

Best regards, Mark

Congratulations. Mark

I agree 100%. Rolling is not an adjustment. It's replacing a bad postiton with a good one. If I cannot find a new, good position, then I don't roll - I merely close and wait. Mark

I'd love to respond, but will grant your wish. mark

We are in agrement, but most people do not see it this way. Coach Phil is consistent. I noticed in his book that he approaches this situation just as he states in his reply to you. I see the world in black and white and feel my view is the only correct view. Most people are more fortunate...

Of course that is true. Mark

I think we arguing semantics though... That's the bottom line and I agree. ... i just dont see how the credit ceases to matter as soon as you see the fill in your account. It matters. It just plays no role (I know that I hold the minority viewpoint here) in deciding when/whether to...

Hi Rally, I think you and I are in total agreement. Sure, the initial credit received is important - but IMHO, it's only important in deciding whether or not to open the position. My disucssion is based on the assumption that the "to open or not to open" decision has already been made...

I know you did not address this to me, but... No method is foolproof. The fact that he lost money one month does NOT indicate he made any mistakes. And please keep in mind - his methods involve successfully predicting market direction. If you cannot do that, then you cannot duplicate his...

That viewpoint represents the thinking of the vast majority of traders and is 100% incorrect. Consider this: You open a credit spread for $2 and some time passes. Let's say that you can now close the position for a 40 cent debit. You have a choice: keep this spread open or close it. Do...

Yes. But that's for me, my risk profile, and my comfort zone. I would never say that doing what I prefer is the 'correct' action. That's a decision that each investor makes for himself. I prefer to close positions when the profit potential becomes small - and to simultaneously open a new...

Not in my opinion. If the spread can be closed right now for a buck, what difference does it make whether he received a credit of $2, $4, or $6 or any other amount? In your scenario, he can book a profit of $6.30. That is his money, not house money. The decision is based on "do I keep...

Where does the word 'panic' enter into the discussion? What I do not understand is why you are comfortable with your position - one that is close to the money - one that might become a big loser shortly, but you call the other position 'daring'. That other position has 4 weeks longer before...

Hi yip, To me, the initial credit is immaterial. He owns the position now and the only thing that matters (in my opinion) is whether to try to close (or hold to the end) and how much to pay. Mark

I don't get it. Your January short put is 17 point OTM and you are comfortable, but Yip's short is a February, currently 57 points OTM and you call him 'daring'??? Mark

Yip, It seems to me that the MMs don't seem to care anymore. I offered at 90 cents when the market was 70 cents bid, 1.20 offered. Not a nibble. Not even a 75 cent bid. Nada. I did a bit better when opening a few Apr/Mar positions, but they don't pay anything near the midpoint. I'm...

Finally filled - 45 minutes later.