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Thanks for that Jeff and i also found the old posts by rdemyan. I havent had the time to check the figures yet due to my day job but want to see if the month to month drops from mid/late 2000 to mid 2002 corresponds to the scary downward spiral i see in BIGCHARTS. I dont care if its called a...

If it does, then we recently had half a black swan :D I dont think thats a black swan but it can still make you broke depending on how leveraged you are and how close your strikes are.

Sure the bid/ask spread sucks but the advantage is there's also a chance for convergence gains.

No worries, your answer like your posts are always interesting. Its probably skill and patience combined with luck. One might think that ones safe and patting themself on the back putting on Credit PUT spreads after the recent falls, but what if there's another few 60 pts days in the coming...

THnaks for the responses guys and gal.... :D and sorry for the late replies. Went to sleep after my post If it drops 50% in two years period gradually, it creates the best trading environment for premium sellers (esp FOTM sellers) for the following reasons: Yip, good to see your...

Need some advice pple..... If you go to BIG CHARTS and look at the SPX chart for the last 10 years. you'll notice that SPX fell from 1500 to 800 in the space of roughly two years. From mid 2000 to mid 2002 !!! That is a mighty fall :eek: My question is, won't all we credit spreaders on...

Agreed , take the loss and move on. Closed my PUT ratio spreads for a loss as well today...but not as big as yesterday. Any premium writing strategy on the PUT side would have lost, whether it FOTM credit spreads, diagonals, ratio spreads. Even the supposedly safe CTM credit spreads preffered by...

Oops....stupid me ...Duh Cheers

Im perplexed. Doesnt this present an arb opportunity :confused: ES 1380 ES APR 1440 PUT 56.00bid 58.00ask Doesn't that give a $2 riskless profit ie buy 1440P @ 58 Buy ES future @ 1380 and exercise

Great call Coach....but maybe it'll happen tomorrow :) I had a zero cost 1380/1330 Mar/April put diagonal. Even that was down. Even that was down about $5 last week when SPX was around 1385. Disastrous leg out for $3 when SPX was around 1403. SHould have only paid only around $1.5 if i...

Correct me if im wrong but both bought and sold. One party would have bought 10k and another would have sold :D

Well some I use are: AFITM - Almost Fuckin In the Money (which is what I use for my short strikes when the market moves against me. WTFOTM - Way the F@CK Out of the Money (my credit spread strikes) PDGPJEOTM - Please dear God Please Just Expire OTM...

Gay site? You know something i don't ? :D scoobie

Mark im sure the people here who's read your book will put in some good reviews. One "fat tail" review from some idiot wont do too much damage :)

As expiry draws close, its very interesting... 2-3 days after i put on the position (ie with 2 - 3 weeks to expiry), I was making a lot of money even if ES was at 1460. Sum of my longs worth more than my short. It needed only move to 1460 for me to make money. Today or even 3 days ago, i...

Apologies, The CALLS above should be FEB and not APR. Typo mistake. scoobie

Yeah i wouldn't do ratio spreads on individual companies as well. Only on the indexes. No company specific risks but there's still the black swan :D Time decay is good for the ratio spread but not for backspread as the underlying is approaching the closer strike. Just experimenting and think...

Hi Mark, agree, which is why i prefer to do ratio spreads on the PUT side and backspreads on the CALL side. Tiny positions that im dipping my toes in 01/26/07 ES - 1431 BOT 1 APR 1370P - 10.25 SLD 2 APR 1340P - 6.75 NET CREDIT 3.25 Currently have around 40% profit. Thinking of...