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As Coach pointed out, the diagonals I put on the other day (look back a few pages) turns out to be a Sep/Oct calendar with a Put diagonal surrounding it. I guess I knew that going in but didn't think about it in those terms, just as diagonals. I would prefer for the market to go down a little...

Nice quiet day in the market to let a little theta do its work :).

That's the way I use it, as a gauge for market volatility. Drops in the market tend to instill fear in traders so VIX goes up, the opposite tends to happen as the market rises.

I'm looking at that right now, gives a nice spike at the short stike but still gives me some negative areas. I like the idea though, need to work with it more to see what can be done with it.

It took me most of the day but I finally got filled on all 3 diagonals. I'm pretty full on my Sep positions (I have 2 other non-SPX positions right now) and will be in monitor mode for a while to see what happens.

Here is a position for Sep that I am considering putting on today, it is a triple diagonal ala Sailing: STO Sep 1250p BTO Oct 1225p current mid = 2.75 STO Sep 1275p BTO Oct 1250p current mid = 2.90 STO Sep 1325c BTO Oct 1350c current mid = 1.60 This gives me a profit window...

I did put on a very small XEO position on Friday. I got filled at $2.50 on an ATM 600/605 bear call spread. Of course the index ran up on me right after I was filled. I haven't done an ATM spread and wanted to try one out to see how it reacts compared to a CTM spread. Any tips you guys want...

Now if we only knew a lawyer... :D

I tried that one today, no fill. Looking at this one and the 1350/1375 calls but don't like the large negative dip at current vol. Haven't found a good ATM diagonal to take care of the dip without the 1225/1250 collapsing and going negative. Although, if we drop vol should increase and push...

How do you define "reasonable"?

Thanks for the tip. I like the look of the XEO, might try something there.

Is the call position a credit not a debit? That would eliminate the negative dip.

For some reason it didn't let me post the jpg I have, trying again.

Maybe I'm doing something wrong in ToS but I show this position with a large negative area at expiration with current vol levels. Here is the graph I see when I plug the numbers into ToS:

I'm glad at this point that I closed and took the profit off the table, just too much strength in the market lately so I pulled the trigger. Still made decent money on the trade, enough that I can buy you a drink. I know a couple places that have penny beer nights :D.

LOL! :D

Your breakeven is at 1300+premium you received. If SET is 1305 or above your loss is $5-premium taken in. What did you originally sell the 1300/1305 bear call spread for?

The drink offer is offically withdrawn :p.

If you don't mind, maybe give us a peek at what stikes you are looking at for your triple diagonal now that the market has run up. I keep getting too many areas that dip negative in the middle ranges.

Since you paid .20 for the bfly you will lose money if SET is below 1260 or above 1280 (the .20 you spent for the bfly). Everywhere inbetween you make money right?