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Would you care to share what would be better than a 1:1 r:r with a IV play, especially after capitualation?

That's why high volume, low bid/ask spreads options are almost the only ones to trade with these strategies.

Perhaps my perspective is too simplistic; however, I rely on the volatility crush after earnings and/or after capitulation.

Are you merging the reverse iron flys/condors and the short flys/condors?

The risk: reward ratio is pretty sound for all of them (with the exception of the reverse calendar spread if held for too many days). I guess that's probably why I've narrowed by choices down to these. Also, probability is a key factor... as trading comes down to probabilities and risk...

Although I voted for the Reverse Calendar Spread, I REALLY like the risk:reward of a Reverse Iron Condor (especially in a volatile market)...

I am completely convinced that the best way to minimize "gambling" in the market is with the use of spreads. I've narrowed down my list of high probability, low risk spreads to the following 5 spreads: (1) Reverse calendar spreads (2) Short condor (3) Reverse Iron Condor (4) Short Butterfly...

Even though a protective (married) put may end up leaving money on the table, remember there's no "free lunch". I understand that it's the same as buying a call; however, you have ownership of the asset vs. an option on an asset. In your opinion, is it best to enter a married put (or long a...

Hi Totalkeops, If you don't mind me asking, what's your Return on capital per month using this system (i.e. 5% per month on capital equals 60% per year, or more if compounding)? thanks, Walt

For example: Today SPY opened at 127.80. Set a long position at 128.00 and a short position at 127.60. Assuming the opening trend will extend at least 50 cents, this gives you enough room to ride the trend for a 20+ cent profit before closing out your position. Thanks, Walt

Instead of fading the opening, wouldn't it be better to trend with the opening (especially since this is a scalping system trying to capture 20 cents or so)? thanks, Walt

Perhaps you should review Don Bright's Open Order journal. It's a scalping day trading strategy in the stock market that appears to have an 80%+ success rate. Don is very reputable. I would take credence in his claims, given his long & extensive track record. Does anyone disagree??? Walt

Correct me if I'm wrong, but isn't this in essence a countertrend strategy for market openings, as buy orders are entered below the estimated Fair Value and sell orders are entered above the Fair Value. BTW, hopefully your session went well last night, Don. Walt

LoveMySystems, what sort of risk:reward do you have a a sytem that produces 100% per week? Are you also risking about 100% of your capital? thanks, Walt

Hi hlpsg, Points taken... I will report out on my results... I believe the key to mitigating major movements in the price of the underlying asset is to hedge with the underlying, although this would certainly reduce the ROI...

Theta & Vega are the primary drivers of this strategy...

Will do...

Hi Thinkplus, You're correct, some refer to it as a double calendar, whereas some refer to it as a strangle swap. I'll review the posts you referenced in the Monkey Calendar thread. I chose a long term spread (i.e. Dec/Jan) because of the option price convergence between the two months...

I agree that the far backmonth bid/ask quotes are a challenge. However, I believe that the theta & vega benefits (if managed correctly) will offset the wide bid/ask gap. I also agree that legging-in is quite risky. If I do it, I would incorporate an averaging-in strategy with it... similar...

I'm selecting the ATM options for the swap strangles. My aproach is the same, regardless of a bull, bear or neutral market. I'm only focusing on profiting from theta & vega... I'll manage the positions until I'm able to profit by 25% - 50% of what I paid... Walt