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Rally, I am very naive in the terminology. What do you mean by cheap gamma? Are you looking at current IV and compare it with historial IV? I wonder how you simulated it. Did you backtest it? I think option is fairly priced and it should offer no positve expectancy for any...

Mark, Excellent! You should have told me before yesterday's close. Can't do anything now, and RUT settled at 770.06. The settlement cost for me is around 8K. The price of my long leg is not enough to pay for it. If I chose to close it yesterday, I would have a credit of $3, or a profit...

Rickarb, Since I have used vertical to partially hedge against my long call, hopefully my brain can function better now. In your opinion, what is the best environment for long gamma? Mav seems to like long gamma better than short gamma.

Mark, I placed my trades with ameritrades. Sometimes they released the margin on Friday, and today they don't. I just opened an account with TOS with the intent to test the diagonal strategy but there is not enough fund for naked writing. I am going to close my ameritrade account and...

Mark, I feel the real cost of not closing my diagonal. rut gapped up and reversed. I wanted to close my long call but rejected because of the margin. I wanted to open another short call to hedge against it, and it was rejected too. I called the option desk, but I had been on hold for 30...

Even when the short strike is breached, it doesn't mean that you are at a loss. It depends on the strike difference for the call diagonal and the time remaining. For a put diagonal, you have a lower BE point if you opened the position at a low IV environment. Today my call diagonal...

The price i paid for closing put is only 0.3, and the extra price (time premium) for closing call is around 0.9. Assuming rut opens the same as today's close (mostly likely outcome), I lost a lot more when closing the call. If rut opens 1 point higher, I won't lose much by not closing the...

In case someone cares, I covered 760 put short for a debit of 0.3, and will take set risk for 760 call.

Mark, I do. I usually use both narrow strikes and wide strikes to balance it out to avoid the debits.

I have shorted 3 contracts of rut 760 put, and 8 contracts rut 760 calls from my DDs. Any suggestions to hedge against the set risk?

There is no simple strategy for long dgamma and short gamma, but a complex combo might do?! I can also short gamma and take the gamma risk for a short period of time, and establish long dgamma when certain risk level is reached. Gamma doesn't increase much in the beginning, and if you can...

Thanks a lot for educating me. I prefer short gamma with long dgamma. Never tried it though.

Mav, I don't want to mention his name in a public forum. Don't know if he likes it.

What about a +dgamma strategy?

It is not the strategy. Both of the shorts of my rut call diagonals was breached (rut at 760 and 770), but i reacted to adjust my positions to move up the be points. My vertical (780/790) was at risk too. Yesterday I closed my oct 770/dec 790 diagonal by making a nice profit. You need to...

Dave, You can't generalize. My group leader was from worldco, and he made over 1 mil in his 2nd year. I heard he was always in the top 10 list in worldco. He doesn't make as much as he did, but he is consistent, and make several K everyday, with 1 or 2 down days every month.

For some reasons, the trial version didn't work with my excel program when I tried it 3 months ago (Perhaps I have too many add-ons ).

Please release me from your ignore list. I need your response to my silly question. :D

Wow! Any suggestion? I really don't know the financial industry well enough to start trading!

This feature is similar to the one I am looking for. Can they calculate the margin change with a confidence level? I should take a closer look at it.