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Surely you don't believe MAV meant that EVERY trader with that short premo gets wiped out EVERY day. Your example of one trader who did NOT get wiped out proves nothing - except that you are way out of line. Mark

This silly bet of yours proves nothing. MAV would be the first to tell you that buying that premium is going to lose in the vast majority of cases. But, if you offered to wager - and if were possible to make such a wager - that you would sell such premium every month for the next 100 years -...

These are NOT nickel trasactions. He traded 4 different series for a net debit of one nickel. Mark

There is NOTHING in the statement that you quoted about which he can be 'proven wrong'. He said that he never sells naked premium. That is apparently a true statement. He also said that he believes bad traders sell naked premium (to compensate for bad trading) and that good traders can...

Not one tenth of how sorry the rest of us are. Mark

This begs the question: Are strike selection coupled with sufficient premium to compensate for risk vital? Or is it better to be 'in' with the best that's available? I prefer to get the best combination of strikes and credits I can get - and be invested. Comments? Mark

Let's say you have 100k and decide that 10k is all you care to devote to the DD startegy. If you earn 1k for the month, you may not think is method is very productive because you only earned 1%. OTOH, I would say that the method worked well and returned 10%. This is NOT a big deal. As I...

As you say, everyone has different goals. My target for DDs is to increase the portion of my equity that I devote to DDs by 4% per month. I'm know Murray has done better. Mark

It's not necessary to have true IC positions. Consider any of the following: 1) Fewer call spreads than put spreads 2) Only put spreads 3) Call spreads further OTM than put spreads, even though the credits are smaller 4) Call spreads with strikes closer to each other Mark

You can keep your books in any manner that suits you. The return on margin allows you to see how much you earn, compared with money at risk. To me, that's the important number. Because you consider DDs to be too risky for your entire portfolio (a sound judgment!), the return on 'total...

To win as an option buyer, the underlying must move in the right direction. AND it must move quickly. AND it must move far enough - depending on how long you hold the option. When selling, all you need to win, is for the stock to move in the right direction OR time to pass OR the stock to...

Agree completely. The odds of success are so much higher when you sell, rather than buy, options and spreads. Mark

There isn't one that's worth the cost. Not one. If you had a workable system that produced profits on a consistent basis, would you sell it for a few measly bucks, or use it yourself to make many millions? Mark

1) I like the fact that the condor allows you to be further OTM. 2) I don't like having to sell additional spreads to obtain the same profit potential. 3) DD can occasionally reward you with a very nice bonus. That means one does not really know, in advance, the profit potential from the...

I'm even newer than Murray to the diagonal game - currently in my 5th month. But I've learned a great deal during that time. I also know there are plently of reasonable adaptations to this methodology. Yes, I prefer the diagonal to the credit spread with extra wing (I call that strategy...

As you are a good customer, call Fidelity and ask how you can get around this manual check. If they decline to help, tell them you expect to receive a fill (from their error account) every time they delay an order. What can they do but refuse your request? Alternative: Ask the maximum number...

Hi Murray, I've actually considered bringing this up for discussion. But, no, I have not done a thorough analysis. I believe this approach would be better for your DD than for mine. Reasons: 1) Paying debits for the DD, plus buying a tent pole calendar means that all three positions...

Which susbcription service? Mark

Suggestion: Have more than one position monthly. Either different strikes or different underlying. I do that all the time and being forced out of one position may sting, but I know that I have other positions that are still working for me when I close one. I am trading DD and not...