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From today's expiration close of 132+, it looks like this was the way to go. Of course, hindsight is 20/20.:)

I am king of the bonehead trades, so don't beat yourself up over this one. As RR said, the OIH is a tough one. I have been trading it a lot. By the time it finishes whipsawing you around, you will forget your own name. :) AZD (I think)

True, averaging down is not always the best strategy, but the OIH acts more like an index and the original poster maintained that he was still bullish. 4.167 to make .833 is almost 20% in 10 days. Not too bad of a return. AZD

He pays a premium for the spread, but his breakeven is lower and his profit potential is higher. AZD

If you were willing to risk $930 and you are still bullish NOW, then how about this: Buy 2 more Jan 125 Calls at 6.4 Sell 3 Jan 130 Calls at 3.2 Cost of Jan 125 Calls = $2210 Proceeds from Jan 130 Calls = $960 Total Cost of 125/130 spread / max risk $1250 Max profit = $250 with OIH...

Do you hold or fold? With the SPX so close to your strike price and with settlement prices unpredictable (It could settle at a much higher price than the SPX is all day), it seems a bit risky to hold short calls through expiration. Look at what happened to the VIX. It settled at 12.29...

What does everyone think about putting on an August SPX (or SPY NDX RUT etc.) straddle just before the Fed announcement? I realize that one risk is that IV could drop significantly after the announcement. If we are worried about IV, then how about a reverse calendar? What are some of your...

Mark, It's good to see you in this parallel cyberuniverse. :) In your reply, are you talking about a vertical spread or the diagonal credit/debit spread that many seem to be doing? AZD

Sailing, Thanks for the reply. Do you have a specific example of something that looks good to you for the current period. I'm not asking for advice, but just trying to get an idea of your methodology. I came in late to the discussion. AZD

Hello everyone. I am interested in learning more about this SPX diagonal that some of you have been doing. I have been trading SPX spreads for a while, but my diagonals have been more like the following: BTO Dec 1300 STO July 1250. On occasion, I have traded diagonals similar to the ones...