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Yes. :D Why will you want to take the other side? This diagonal is almost delta neural, almost gamma neural with a large vega. I am betting on vega.

To take advantage of the low IV today (rvx at 17 at trading time) bto rut jun 900 call x 6 @3.7 sto rut dec 800 call x 2 @ 6.6

If I am trading under my Delaware LLC (pass-thro), I am still taxed in my home state via income tax. There is no tax avoidance and how would I pay penalty? I live in MA that is not very friendly to LLC.

Can you form a Delaware LLC and trade under that LLC without registering it to do business in your home state?

I think piccon has responded to your concern, and i just explain why I made the trade myself. I don't have any CTM vertical. I have a combo with many long calls at different strikes and different expiration. In short, these CTM short calls are protected by many long calls (like a diagonal)...

I didn't open the call spread on a down day. I closed 2 contracts of my short call at 810, and shorted 1 contract of 800 call. The net cash balance is almost 0 with my margin released half. Delta of the whole book is unchanged (almost 0) with lower gamma. I was trying to reduce the negative...

Thats a good point. But why don't you sell the option at 800 like i did today (Of course, protected by whatever way you choose).

piccon, I think we are concerned about your exit strategy when case 1 happens. Do you cut your loss quick, or you average down because of your directional outlook?

Mark, Good point! Thats why I trade small size for directional bet. I always prepare for being wrong.

piccon, I don't think your strategy is aggressive, as long as it fits your style. Some sell naked calls as well. The bottom line is to generate consistent profit. I appreciate your sharing with your trades. I think ITM, ATM and CTM are good for short term trading. RUT is very...

Good job! I have a different opinion. I think the whole market is struggling, and I don't think rut will go beyond 800 this month (the high is around 801). I just closed my 810 call, and open half size of 800 call based on my outlook.

I think it depends on the state that your LLC is registered. Usually as a manager of a LLC (unless it is managed by others), the owner has to pay SS tax (at least it is the case in MA).

Coach, Does your LLC have to register to do business in your home state if you trade at home under your LLC? Is your LLC taxed as partnership and can you avoid paying FICA tax?

Mark, TOS has an option to send your order to the desk, but i think it has a min size requirement (the software doesn't say so. You have to talk to the support to find out).

Assuming you don't need to withdraw money from your trading account, which way is better in terms of tax saving? 1. prop account (using K-1) - with prop account, you don't pay any social security tax, and only pay the capital gain 2. retail/prop account under LLC - as a managing...

I think Mark, Jeff and Cache have all provided good exit strategies. If my preceived edge is short-term directional outlook, here is what i will do assuming you have opened CTM call verticals. Case 1: the market continues to move up quick: This is the hard part. You are...

I shouldn't call it a hedge to the vertical itself. I looked at the overall greeks, and decided to adjust it with the outlook that rut unable to break new high (around 801). It was an adjustment, not a delta neutral hedge. My b.e. point was 805. If RUT run beyond 801, I would buy additional...

I will sell rut put vertical if there is a big selloff tomorrow. A nice increase in IV creates a better premium for verticals.

For Feb/Jan 790 put alone, it is a loss of 0.45. This trade was a hedge to Jan 800/810 call vertical. I made 0.8 for the call vertial. The combined vertical with the hedge made 0.35. Overall I made around 2.5% return on my portfolio this month.

closed rut feb/jan 790 put @8.6