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Good good, whatever works for you. I'm not sure I understand the second paragraph. You do what you need to do to. The infinite number of possibilities is only limited by the number of different option portfilios one can contruct.

Questions to ask yourself: 1) what's your net delta/gamma at SPX 1214 2) what is it at 1200? 3) what it is at your short strike? 4) can you "solve" for your risk at these or any increment? 5) what do you sell (or buy) hedge off your risk and still try to maintain your +theta and...

To really get good at this sort of thing you have to move beyond looking at a bunch of individual trades as a "set of disperate positions." It becomes much more profitable and easier to hedge once you begin to see everything as "a portfolio" all combined with a "global greek profile."

Money never sleeps my friend. :cool: BTW: Don't you find that you wipe the floor with the slackers in this business who claim that they "work hard?" I surely do......friends and foes alike.

Nice work Risk

That assumes that they once had any credibility at all. (guffaw)

Well there are lot's of ways to say lots of things. But I saw what you were trying to say. I read it wrong the first time.

They can't pause....rising inflation has got them between a rock and hard place. We're not even at equillibrium yet. Real rates are still negative.

It means that eventhough they may not display big size quotes on the XEO you can assume that what you see on the OEX is the size they'll quote on the XEO. the XEO might say 50 x 50....however if you want 5000 up...they'll be happy to do it.

I'm guessing you 'll get the same prices on both since the MM'ers down there are quoting same prices for both markets reguardless of size quoted or open interest. Size to go is implicit in the XEO. Even though it's not quoted....it's there.

He's paid dearly (6-8 cents per share) to front run reports and news and to hear what others were doing. It's no coincidence that he bailed on his hedge fund the exact month Reg FD was enacted. His game was up. And now that he doesn't have any exclusive information..... it shows

I suppose I could try to be. :D Seriously though, this is getting a bit beyond the scope of the thread. Market Maker haircut and retail margin are different, what can I say? Though I understand that some retail option brokers are offering some very nice margin requirements these days.

Margin doesn't equal haircut. Different rules different worlds

You're missing the plot my friend, :-) At no time was I ever "naked" on any position at any time. So the legging issue is only semantic. Sept Gamma covered the whole thing. Futher, "Margin," I have no clue as to what this is all about. I deal with "haircut."which I barely...

Though, I should say that I'd like to lift that upside call short strike. 'Cause I think today is the first day of an extended upside move to new highs. Take the money and run, We shall see :cool:

Hi OC Wow, that is some kind of deep OTM strikes I can see why you only adjust 1/6 of any given year. :-) That being said there many ways to skin the Gato, as it were. Options are flexible; one should always use them in such a manner. Re my .55 credit post: There many many ways to...

This is probably the swing that takes up to new highs above SPX 1250-1260. It's veeeery simple. Repeat after me: "asymmetrical risk." Get it? Got it? good! :cool:

http://www.elitetrader.com/vb/showthread.php?s=&threadid=55247

Re adjustments: remember he's talking about adjustments twice a year in a SUPER CRAZY low vol environment. This environment may continue for 8 more years or vols may regress next month...who knows. But I can assure you it won't always be this way. I did this exact strategy when got into...