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IRS is very non-specific regarding options, but I would answer the question "no". If the wash-sale rule applied to options in most cases, traders would never open a spread trade.

At the moment I'm also doing nothing with my 1340's.:) [edit] I actually think that the CPI report will be a bigger deal than today's announcement.

Non-event... or Even Battle?

Cool. Your comments are welcome.

The journal is ok. This month has been slow with relatively few positions for a few reasons. 1) I have been cautious about today's fed announcement. This might not be a good reason to hold off, but for some reason I found myself having a hard time pulling the trigger with that in the back...

I think the ER might be the determining factor as to which direction it breaks.

This is true. If you can sell the further OTM spread for the same price that you sell the closer spread for, why not just sell 2X the further OTM spread rather than 1/2 the 10-point spreads? In the real world though, you would really never get filled on the further OTM spread at the same...

This is essentially exactly what I was referring to, but didn't want to take the time to explain it. Also, Mo is better at explaining things than I am.:) Anyway, I haven't ever compared them close enough to make a strong statement, but I would imagine that slippage makes the wider spreads...

Sorry Rdeyman. I meant to say that the 5-point spreads are technically MORE risky than the 30-point spreads.

You are correct Rdeyman. I was assuming that the margin was the same. Thus, the 5-point spread is less risky. The problem with 5-point spreads is that the slippage compounds rather quickly. You really have to fight for the fill that you want. Giving up 0.05 to the MMs on a 5-point spread is...

No. All else being equal with the same short strike, a 5-point spread generates the greatest return and it just goes down from there. Two main reasons are: 1) IV increases as you get further OTM so the long leg is getting more expensive. 2) Technically speaking a 30-point spread is less...

After looking it over a bit, I am a little concerned about the latest upward move. I think it is going to find support just above $26 and if the subsequent move is made on high volume then the resistance at $29 is in trouble. That said, I might wait to see if it will bounce off of the...

cnms2, Is HPQ gonna finally breakout?

Sorry I wasn't able to get this posted before. I moved into a new place and had my system packed up into boxes for a couple days. Friday's Action STC 2 DNA MAY 75/80 c @ 4.50 Year to Date P/L Account Value: $12,279.50 YTD Gross P/L: 2,575.00 YTD Commiss: 295.50...

I've also got an order in to roll the MAY SPX bear calls into JUN a little bit further out. No takers yet, so we'll see what happens.

At first glance looks promising. I've got a tee time in 15 minutes, so I'll have to see where they close today and do the r/r analysis over the weekend.

Well, it took two days but the move that I expected finally came just now. I was able to buy the shorts back two days ago for 0.60, and sold the longs today for 5.10, so I didn't quite get back to break even. Overall though, I'm happy with the exit.

For a minute there I was starting to think that you secretly left on your super-yaght and didn't invite me along.:)

That's because I took it with the camera on my pda during our date last weekend, so the resolution is a bit lower than the paparazzi pics that you're used to. I'm just wondering how frisbeeca got ahold of my personal photo album.:D

I completely agree for 2sigma FOTM positions. This changes dramatically for 1sigma OTM. There is generally still a significant amount of premium left, but I believe the 45d-15d strategy still applies with some degree of validity.:)