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1)The ratio depends on what you want to achieve in terms of the level of protection or how aggressive you want to be about trying to capture both. Run your numbers and see where things fall. Buying the Oct is expensive relative to the Sept credit. 2) I always put everything on together...

Another tactic that works with wide spreads and MMs who match every move is to use the other side to get some volume out of them. Say it's 1.00 to 1.20 and the MM always matches you up or down to 1.10 and you would be happy buying at 1.10 but don't want to sit on the bid all day. Toss a few...

I like debit spreads between the current price and the area where the condor would start getting into trouble. If your put wing was say SPX 1150/1140, I might take a smaller number of ES 1180/1170 debit spreads. Sept 1180/1170 closed at fair value $1 yesterday and Oct was $1.50. That will...

Maybe...maybe not. If you don't use ES or SP via Globex, what else could you hedge with at that hour? Also if you have exposure in the direction you are taking the ES/SP position, your margin would likely be lowered under SPAN by the transaction.

I haven't seen the text myself. I received an email from a contact that described some of the changes and Section 1256 expansion was mentioned in rough terms. I will inquire and see what I can find out.

It wouldn't happen under Donaldson. Under Cox it may have a shot. There are really several issues at work here. SSFs have never had a regulatory home and are suffering under the current 20% margin requirements. That needs to be addressed if SSFs are ever going to become viable. Broad...

Agreed. The technology was not as robust 20 years ago. As electronic volume continues to grow, it will make the transition easier. Lots of people are "moving upstairs".

Did you read the article?

Bill Gross got the short end of this...read the article in today's WSJ. Citadel made the money.

I'd like to know who you guys are using once you leave IB that has low commissions and a platform that's up 100% of the time. Please tell us all so we can quit bitching about IB for being down a few minutes out of every quarter.

You no know what you say. IB ok you have problem always post bad thing.

Part of the margin issue is related to reg-t vs. SPAN. Optioncoach is using reg-t products. Under SPAN he would have half the margin...so the software would have to differentiate between securities and commodities. I did some of the same analysis and found some of the same things. At IB...

I would consider selling near the money puts to make a spread.

...and the call allows you to say that you would want to get rid of it at X price, but get paid a small sum if we don't reach X price.

I just play indexes and I always have hedges to keep from getting chapped too badly as we drift up...but my bets are to the downside. If housing comes off we are in for some trouble. $65 oil with flat earnings and if we wake up one morning to 6% bond yields and the neighbor had to drop his...

p2 doesn't visit much any more. I think he finds less value here and he's busy running his fund.

Only if the market has topped out.

I'm always short.

I think part of the issue may be the intended audience. Most of the trading public doesn't deal in options. Many may not have the right or ability to write uncovered options in their accounts. Since owning stock is so basic, it is easier to explain the covered call concept to people. I would...

Many states require registration if you are under 25M. MyDemaray is correct that you cannot register with the SEC with less then 25M but MUST register once you have 30M. In most cases, SEC registration precludes the need for state registration. The point being that someone is able to look at...