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TS, It was an eye opening situation for most IC and DD traders in October, and I have learned a lot from it. I am more confident that I can make money from trading options now than ever before, but I still increase my trading size slowly. The reason for a big loss for most IC or DD...

Do you all know worldco? Many good friends of mine lost their capitals even they consistently made money every single day. This is the risk I like to emphasize here. You can be the best trader in the world and still lose money if you don't choose your prop firm properly. I think these...

I don't agree with the statement. You have to look at your background and personality and see if option trading fits you better. I trade equities, but I have found that option trading fits my personality very well. BTW, I like games, and math. I don't want to generalize and tell you what...

Mav, I am not against going prop. I think it is fair if you and Don can list the disadvantages or the risks in joining prop.

Kelly's formula is good starting point, though I don't use it myself. The problem is a balance of reward against risk for a trader. For me with limited capital, I want to make as high %age as possible. However, to stay in the game, I have to control my risk. I started trading ICs...

TrendSailor, I cannot help you in your trading strategy, but I probably can help you in probability. Your probability is correct for losing 3 consecutive times in the future (i.e. the 3 events haven't happened yet, and they are unknown). The conditional probability that you lose the third...

TrendSailor, If you are really good at probability, you should know the true meaning of randomness. Probability of winning any IC won't change because you just had a big loss. LOL. Your probability of winning is still around 90%, and you still have a 10% of losing. If I flipped a coin...

How do you use the commitment of traders for your indicator? Can you elaborate more about it. I searched the web and it seems that commitment of traders indicators are more useful for future...

bto 3 contracts rut dec/nov 700/740 Put for a credit of 0.15

Phil, Nice to see this new trading style. Very interesting as it has so many variations and adjustments when compared to credit spread.

a good idea to avoid conflict.

Hybone, You are right. The correction here with no of contracts. 10/18: bto rut nov 730P/jan 690P at a debit of 2.4 x 3 10/20: bto rut nov 810C/dec 840C at a credit of 0.2 x 3 10/20: sto rut nov 810C/820C vertical at a credit of 0.6 x 6 10/20: sto rut nov 720P/710P at a credit of...

I started from Hull's book, and then Natenberg's. Is Hull's book useful? Yes, It helps me a lot. I was also looking for a book for my next level. However, the best one esp for selling premium is Coach's thread. If you can write programs, write a position simulator and see how the greeks...

Just buy any PCI video card that supports 2 monitors. I have a Dell, and I added 2 PCI cards. No problem for over 1 year.

Sorry. I probably mis-interpreted your old post. SPX trader thread is too long to find your old post. Probably need Mo to find the exact location. :p

Good idea, and we like to have a thread for Mo's interpretation.

I think it is great to have a forum for all the option traders posting their strategies and PnL. If no one is interested to post his/her PnL, this one will then be my journal.:D I just set up an account with TOS to test new option strategies. This is not the only account for my option...

Mark, Do you have a long leg with each short? Does your selection of short strikes depend on your long strike too?

Since I paid my tuition yesterday, I am trying to learn a lot from it. I don't want to lose the big 1-day time premium for closing earlier. Can I do something like this: 1. Buy the same # of contracts for the corresponding future at Friday's open (assuming open price is very close to...

Rally, I like reading your posts a lot, and I learned a lot from you in the past. I have no doubt that you are a very experienced option trader with outstanding performance. I remember I read it somewhere that you think hedging is inferior. I suspect you didn't hedge your position in your...