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Here's one approach: http://www.optionetics.com/articles/article.asp?id=15166 Bear in mind that you have to get dome amount of IV and/or direction right for gamma scalping to work. Another way to handle the appraciated straddle is to adjust. You can roll the profitable leg back to...

I'm going to ditto the content of the 1st reply that you got. I trade intraday based on a very simple system. In '08 and '09, its return was nothing anyone here would turn their back on. With the exception of the past week, now it provides just a bit more than pin money. Did I mention...

That enables the broker to cover his @ss legally. It doesn't mean that you won't lose yours :)

Because doing it your way would result in a different margin requirement for ITM puts. The margin req. is premium plus 20% of the UL's price. * IF * the put is OTM, there's an additional criterion.

You could achieve it by placing asell to close order on the call spread and place a buy to open on the equivalent put spread. Yeh, I know, four legs instead of two :)

With paper trades, it very easy to ride out (or ignore) the draw downs. Real money can have an emotional context :)

Again, why would one close spread A and simultaneously open spread A? That just incurs slippage and commissions. If closing spread A and opening spread B and there's a common leg on opposite sides of the market, factor it out and execute the synthetic link (spread C). Non sequitur...

Read everyhthng you can get your hands on: Library Buy books Use Google Have patience grasshopper, your time will come

With the early part of this year being fairly stagnant, I did a lot of backtesting on Iron Condors. I too just couldn't pull that trigger and I'm glad I just waited for the beeg show to resume :)

The easy money was made by those on the other side of those trades :)

What happened to the concept of going long via the Theory of Eight? :)

Stop taking advice from failed_trad3rs :)

Thank you for contacting me regarding the debt ceiling; the federal government's legal limit on borrowing. As Florida's junior Senator, it is my priority to help stabilize our economy, increase the availability of jobs, and attract investment to promote the growth of business. In order to reach...

Yup, I won today but not because of any silly predictions or having a clue whether the market would be up or down. I just went along for the ride. I'm a little subbie follower :) :D :eek:

If the market were to drop 30-50% in one day, the precipitation rate would be like 1929: 80% brokers, 20% rain

In '87, the DOW dropped nearly 500 pts from late Aug until pre crash Firday. Monday it dropped 500+ As newurldem said, it was really tough to execute orders because B/A spreads were Holland Tunnel wide )options and equities), price fluctuated wildly and many MM's walked away. It was faster...

Did you mean puts? If not, I need to read a book :) 1:2 is fine for crash scenario but ratio must be higher if looking to hedge long portfolio well as OP wants.

The better the insurance, the greater the cost. The best insurance is outright long puts. Loss down to strike plus premium paid. If you want to diminish that cost, you have to give up something in return. Some positions will give you partial downside coverage (various put spreads) or...

Nahhh, he'll be the guy at the cocktail party telling the same story for the rest of his life - ignoring all of the losing calls he made. Kinda like the Elite in Elite Trader :) As for the OP's prediction, FWIW, Tom DeMark has some technical indicators (as many others do) which suggest that...

If you ask 100 traders what the low print of this down move is going to be, I guarantee you that one of them will be the closest.