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Like all strategies' I'll have to get a feel for it with real money. That's how i learned my ratio spreads. Nothing like trading to get a feel for the strategies. Ah.. OptionCoach's book. Thanks for the info and i might get it.

Yes i prefer a CALL above and a PUT below the index, so they're both out the money. I prefer trading OTM stuff than ITM. And you're right, OTM stuff have better bid ask spreads. Question here is will i get delta neutrality ? My aim is to manage delta while benefitting from theta decay? ie not...

You're right and i agree. But my concern is that the index moves away from my calender strikes, hence my double calender. If the index is moving away from one, its moving towards the other. Which i am hoping the the delta loss of one side will be neutralised by the delta gain of the other calender

Hi, Looking for a bit of advice as i know you trade a lot of calenders. Am i correct in saying, when i put in a long calender (short front month long back month) I dont want the the index to move away from my strikes ? This is because my back month will lose more than my front month, even...

Hi Jaques I actually like a bear market as long as there are no mini black swans. Hi vol and plenty of juice in premium I currently only do my ratio spreads on ES. I wouldn't dare do it on individual stocks for obvious reasons. Yes, i agree that it is currently risky on PUT spreads in this...

I hear ya.... I find the key is as to how wide my spreads are. That's one of the ingredients in my secret sauce :D Good trading to you and may the black swans stay away.

Not trying to inflate my ego here mate, just stating the facts since you are trying so hard to make it sound like it's so hard to make money and try to put everyone down. In fact it's been relatively easy. Couldn't help myself but post :D I've been profitable making 3% a month since April...

According to Big Charts, the SPX PE ratio is actually 17.44. So i think you're off the mark at 14.

According to Big Charts, the SPX PE ratio is actually 17.44. So i think you're off the mark at 14.

Thanks for yr reply. So your liquidation value didn't look too crash hot either ha ha. I remember a year or two back when Coach was saying that ballooning crerdit spreads always never looks good when the underlying is approaching your shorts. I guess its the same whether it credit spreads or...

Oh i just want to add that i was very frustrated when VIX was 35 and ES was around 1380 because I was dying to write more ratio spreads but had no margin to do so!! That was the best time to writes spreads just when everyone was running scared. I coud have got $10 to $13 for ratio spreads which...

Hi Domestic, Unfortunate to hear that you are down 5% of your capital this month. On the other hand, that's not bad considering that the market drop in the past few weeks was very severe. Also 5% is not bad for you cause you should make it up in one month. For you to loose only 5% drawdown in...

Your funds will be safe if IB were to go bust. The money is deposited with Citibank and IB cant touch it if it were to go under.

If anyone in interested in additional good info on pairs trading, check out "Andy's spread trading journal" on elitetrader. He shows you his actual trades. Please search for it as i don't know how to link it. Cheers Scoobie

Does anyone know if pairs trading can be done on the futures indexes? eg buying the ES and selling the ER2 or vice versa?

Agreed, its fraud, accounting fraud....misleading investors with rosy pictures while the company was sinking etc etc..saw the doco. But im sure there's fraud on Brian's part as well unless he blew up overnight and did not have a chance to warn investors. But bottom line is he still blew...

Lose billions in a company like Enron and you go to jail. Lose 6 billion in a hedge fund and you get rewarded with more funds to start another fund. mmm doesnt seem fair to me ? Shouldn't they go to jail too ? What's the difference between the two?

Vic would have been hit hard using his naked PUT options selling strategy during the downturn from the mid 2000 to mid 2002 period. Just look at the 1 decade BIG CHARTS chart on SPX. He would not have survived that with his simple index options PUT selling strategy.

Plenty of other strategies were mentioned in the past. But mainly set up so a credit was received on opening a spread. such as 1. Debit double diagonals favoured and used succesfully by Sailing but did not work for me on two occasions i tried it. It was profitable for me for a while as the...

Agree with your statement. But the problem is most of the people on this thread are credit spreaders, hence the journal name SPX Credit Spread Trader :) Will you buy a debit spread now? You may think the worse is over and start selling Put Credit spreads after this nice drop. But what if...