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The biggest down day on Wall Street was Oct 19 1987. That was slightly less than 25% and it wasn't a gap.

My experience with Schwab and Fidelity is (was) that mere mortals and retail customers are not allowed to speak directly with the Options Department. In fact neither are the grunt brokers. You must comply and bide your time and sell covered calls for a while, then apply again. Why not try...

I think it depends on your broker. ToS lets you do stop, limit, trailing stop etc on multi-leg positions, like if a short straddle gets to a certain value.

Cuz QE I and QE II worked so well. Don't they see that the road they are kicking the can down is a dead end?

"Sold" the put side for 3.72 for about .60 profit overall. Holding the calls in case the market comes back, otherwise will lose .09 on those. Hey, I did better than Atticus, except he used real money. What do I win?

Do you actually trade on Cohen's strategy? I read the book about 5 years ago but got sidetracked and never implemented it. Also, I can't seem to find anything current about him on the Web.

BTW, that was directed at HoCo who seems to have abandoned his thread.

Can you just use beta?

Unless my aneurysm just popped, long stock+short call = short put.

PNL - P&L - the profit/loss graph at expiration. If you just want to be long stock try short put+long call, but the stock needs to move before expiration. Cheaper than buying stock but they don't last forever, plus you get the same downside as naked long stock.

Isn't that still two short puts?

Paper-traded 20 AUG1 131/132 SPY strangles for 3.13. This was earlier in the day when SPY was trading around 131.35. If I had any balls I would have used real money, probably never get a situation like this again.

I think Option Coach had a name for an unbalanced strangle in his book. I'll go look it up. /brb Edit: He calls them straps and strips depending on whether it has extra calls or puts.

Don't know if there is a name but 2 short puts+1 covered call (long UL and short call) = 3 short puts at different strikes. That leaves the extra short call.

VIX is down a bit today and the debt ceiling vote after the stock market closes today.

He says later that he takes the shares and sells covered calls.

Atticus says he does this with OPM with individual stocks on this thread: http://www.elitetrader.com/vb/showthread.php?s=&threadid=206482 But he buys downside index protection. Also, did you read the file Dr Joe posted in his new Yahoo group? It's an old paper on selling puts, then...

Yes, I was supporting your position. Buying an ATM straddle the day before would have lost.

I don't think anyone thinks it was an IV wager. Like Atticus said, it was a bet on whether the post-earns move would outrun the IV collapse.

Yesterday 375 straddle was 18.40, today 12.78. EDIT: BTW, the 360 straddle was 17.15 when I bought on 7/15, closed it at 29.96.