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What was your read on support? Previous low was 70 and change and before that around 67. What adjustment plans do you have?

I don't trade the SPX due to slippage/fill issues. However, there are other drawbacks with SPY/IWM/QQQQ 1pt spreads - namely commission. Also, when comparing fills, are you really getting better fills when taking index size into account? You might find you are not. More here for an...

If you avoid trending months, basing strike selection purely on implied probabilities is a valid approach IMO and not neccessarily restricted to large accounts. For example, the last 4 months (including this one) have been excellent for probability based (double or pregnant) butterflies or...

Also known as Pareto's principle :D http://en.wikipedia.org/wiki/Pareto_principle

Way OT but yes, she did make it just about watchable. Nice hair, lipstick etc. but what's underneath? LOL Seriously though, she has talent and promise. Let's see if she screws it up.

A collar is just a bull vertical (less commissions). You have not gone long the downside unless I misunderstand your meaning.

I take youre point re: luck and I'm a firm believer in the very large role it plays in life. However, I cannot agree with your endorsement of the film Match Point LOL. It was bad luck for me to be dragged to see it and I will never be able to get those 2 hours of my life back :mad:

Seriously Donna, take a break LOL. :D

Yes you're right, the cost of carry is factored into the price of the short box. However, if you use marginable securities as collateral you might be able to increase the "interest" earned over base. The problem being that you won't get 100% equivalent of the full cash amount for collateral...

You read my mind, but since I'm here too I can't be the one to tell you! Marked to market is just what the position is currently valued at i.e. if you had to liquidate right now. It's the paper gain/loss. So your aunt should be trading my account instead :)

LOL. I'll probably stick that in my first post if I ever start my own journal.

Not being confrontational but I would like to add that I think about these positions almost in the opposite way. My approach is that the "credit" received from the short vertical does not belong to you. It's a temporary loan from the market courtesy of the short box "attached" to the...

Are those buy/sell signals coming from the Hurst Exponent?

FYI. Re-modelled projections for my OIH 150 combo (static vols). Contrary to what I asserted earlier, I will NOT be converting by close today. WILL be naked over a second weekend. Conversion/offsetting currently not worth it. Now looking to convert perhaps on Tuesday for further ~$1 in...

FWIW, I tried a similar approach to this with poor results in the past. The main motivation was to avoid being naked. I just found that I was fighting theta and delta too much most of the time. Waiting for the IV pop was painful and was accompanied with delta consequences. However, if you...

I think it's all a variation on a theme. Often with different objectives and intent but sharing similar characteristics nonetheless. I was going to summarize the approaches more formally but will do a quick summary here for everyone's benefit for folks that are interested. I will restrict...

Great call you two. Trust you both traded in line with your own predictions and have made bank today :D

Donna, Sounds like a plan. Make a play for the expected 1 sigma move with long options and also gain from the expected <2 sigma move with the short options/credit spread. Potential convergence gains as Riskarb puts it. You find yourself wanting the underlying to move towards your short...

Uh oh :D

LMAO. I love it. I need to permanently attach that to all of my posts. Need one for "tongue-in-cheek" too, though the visual representation might be somewhat misconstrued!