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The ES position you documented here last month was a dream entry. It went big in your favor. That is the ideal for placing a hedge as you get to build up a comfort zone and can move stops up to entry or better and eliminate the whipsaw risk. I was very jealous!

Whipsaw risk (loss) > premium received from credit spread. Simplistic Example: You have a 10 point SPX vertical sold for $0.50 You are therefore trying to hedge $9.50 risk on the spread but the cost of the hedge cannot exceed $0.50!!!! - Successful execution of this strategy is a lot...

My apologies, I assumed you were fully up to speed on synthetics hence the brevity in my earlier post. Synthetics refresher: Long futures + long PUT = long CALL OR Long futures + short CALL = short PUT As per your example, looking at the CALL side, instead of going long futures and...

In reference to the gamma risk my intention was to convey the fact that the straddle bleeds gamma as it trades away from neutrality. Yes, you're accumulating deltas, but you're doing so at a decreasing rate. Contrast this with an OTM option whose gamma expands as it becomes ATM i.e. the deltas...

I thought IB used jfreechart for their real-time charting? I could be making it up though. You might want to look at the source for Eclipse Trader on sourceforge for the charting code. Not sure if it is in an SWT component or not. Good luck. [EDIT: I see this is a very old thread that...

FWIW, it's called a short strangle. You may want to compare selling straddles instead as the gamma risk can be more manageable. Size position accordingly and hedge with spot when deemed appropriate. Many people write OTM options naked on ES. Some people swear by it. I also personally...

Let me be the first of the inevitable horde of ETers to wish you luck in this endeavor. I hope you aren't faced with the same obstacles you were the last time you attempted this feat (a couple of years ago?) MoMoney.

Might want to read the question first! FWIW, you might also want to make yourself aware of ET Conduct Rules before anything bad happens. It seems folks have been banned for a lot less.

Earlier thread on Vtrader: http://www.elitetrader.com/vb/showthread.php?s=&threadid=73840 They are not a sponsor so a limited amount can be discussed on these forums. Suggest you PM Maverick74 as he manages one of the offices I believe. Also, optioncoach has been with them for some...

It has been pointed out before that chit chat exists for a reason. It wasn't there to start with. Trading threads can easily deteriorate into OT discussions without a dedicated chit chat section for those that are desperate to get to know their ET peers better in a non-trading context...

Good job. OT: Aren't you expecting a new munchkin soon/already?

Look up what Reg-T minimums are for naked options. You won't find a broker than can offer less than the minimums. In my experience IB usually goes with minimums with the exception of when their software hasn't been able to handle more complicated positions such as unbalanced butterflies etc...

...and sometimes it's not...:confused:

The relationship between price and IV isn't one that can be put into a formula i.e. there is no constant correlation. Indeed, the volatility of the correlation can be higher than volatility of the underlying itself! Firstly it is important to understand IV and where it comes from then you can...

Indeed. Start off with a simpler example e.g. simple CALL or PUT. Do you need to move the risk profile up or down to account for the debit/credit? Back to the BWB: Understand where the risk in the position is. Understand the risk of a butterfly and a vertical. The BWB contains both of these...

You mean wait and see? Don't panic? That's far too sensible. I hereby ban you from ET.

You're not going to be underwater much relative to your initial credit/debit! Remember ATM spreads are neither long or short premium i.e. there is no decay benefit/harm to the spread. That has some interesting implications. XEO/OEX nearly re-tested the May high today. SPX is obviously...

LMAO. Now I've seen it all. It's a big world with lots of people in it.

It wasn't deleted but moved to the more appropriate place: Politics & Religion Forum. FWIW, probably a better place to ask why your thread was deleted in future is the Feedback Forum

Your question was tantamount to "how to use an Internet Forum" LOL. You aren't going to get much response from that kind of question.