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you could ...but with a diagonal consisting of a calendar w/ an embedded short put spread, you are effectively shorting a front month put spread which takes you back to bad R/R due to low vols..gray area trade because of this low vol regime ...also dependent on your magnitude of the move...

To echo Kim's assertion about strike selection ....here is another way to dissect whether position is short or long theta and this takes into consideration the skew..... Given 1 exp month, strip out the intrinsic, and net out the "juice" aka extrinisic part, if you are negative, you are bleeding...

take the advise from Kim. Wth Vol so cheap, otm put calendars are prob the best way to harness a bearish foreast.. 2nd place is a put vertical with the long leg being the ATM put.(you get some skew benefit as well.

Megane.. selling puts spread with VIX at multi year lows is not very good strategy even with a win/loss % > 70% which this one has... your R/R is simply not there.I've done backtests on put speads selling that wins 80% of the time with a neg expectation. PM me for deets and I might be able to...

That is a reasonable strategy assuming you are really pretty decent at forecasting the bear move- BUT that IV spike you are hoping for will be dampened by the shift in the skew bec the OTM strike is now the ATM strike so keep that in mind.

Hi Pekelo.. if you are sure of a big move w/o directional bias, short a fly instead.. Low IV means good "gamma rent" while the short wings dampen vega exposure (somewhat). You get a big move, sell out the straddle, maybe put on a new straddle . If you get lucky and get another push, your fly...

get "Stock Market Wizards by J Schwager and read chapter on John Bender- made tons using options to trade his prob distro forecast.

Maxpi.. bumping each other was not a big deal.. You know what the worse was , for me at least? A $2 broker in front of me- in his mid 60's , hacking and coughing all day, with dentures.(so now you can imagine the spray pattern...lol) .. occasionally he would hear a juicy bid behind me... turn...

Hi. I am trying to draw a horizontal line in Thinkscript starting in the 9:40AM bar that represents the highest hi of the first 10 minutes of NYSE trading. So for a 5 min charts of XYZ, a horizontal line for today AFTER the 9:40 bar would be the high from 9:30 to 9:40, for yesterday's 5m chart...

are you putting criteria or filter on your stocks? or just buy an ATM spread daily?

I am not sure. Most of his books kinda contain the same topics BUT presented differently. The earnings chapter you seek is in one of the books- one that I read a while back but did not record the title. I would go into amazon and read the reviews and see if that topic is mentioned. That beign...

get the book by Jeff Augen. He goes into detail about options trading in/around earnings.

I think it is mostly the throttling issue that slows it down. I've given up on that datafeed route. If you miss a day of download , and you have a long watchlist, forget it. The throttling will turn a 2 minute chore with other feeds into a 1 hour one.

also watch out for the volatility crush on upmoves (at least in US equities..) so you may want to have an idea of the iv hi/lo range of the tickers ur trading.

model out the prob distribution of the stock and pick the best strike(s) to reflect your forecast... for example... there are bullish patterns (maybe bollinger band breakout) and there are BULLISH patterns (bollinger breakout+ ACD+stock mired in a 52 week low that breaks out of channel on huge...

Also 1 thing to consider with condors, flies and any short gamma trades - make sure you are putting them on during the right volatility environment. Vols are very cheap right now.

it will be easier for you to grasp this concept you are trying to conceptualize if you think of the markets as a place where people express their outlook thru buying and selling decisions WITH varying risk profiles and expectations and most important have their own timeframe with which to wait...

Here is another piece which might explain the low volume/volatility. There is a new Dept of Labor law that covers retirements accounts. In essence, the law is to discourage "churning" retirement accounts . In compliance with this rule, firms have phased out commission based accounts and put...

There are TONS of good video content out there about options. The effort is in filtering out the good from the bad AND resisting the temptation to fall for a "get rich quick" course for thousands or an alert service that promises > 80% win rate.. It is not just the win rate but the overall...

Tom. I tried it on the spx (where I have no experience whatsoever) and I think I know why I can't visualize your pnl profile. I was thinking of selling a higher strike in the back month after I buy back the short front month effectively turning an OTM call calendar into a long call vertical in...