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and because i'm stubborn

to try and stay market neutral overnight

So i shorted 100 IWM shorted 1 sep 70 put bought 100 dia and sold 1 sep 125 call

i can feel the love in the room

took the whole shabangle of the table except the short fut

bought the 1230 put to hedge

what would happen to this position if the s&p opened at 600 tomorrow?

maybe i should have been clear about the aim of this trade: hold the short put and the short call untill expiration

joneog: do you mean that being short the vix fut is the same position?

what do you mean? yes, the short put is covered by being short the underlying

yes vol for put and call was just over 20%

but my short put is covered because i am short the underlying

yeah, short sep future short sep put long dec fut +short dec call

but if i were to be short the dec 1240 put straight out and say a bomb would explode and the sp would trade at 600, my losses would be enormous were as now, i am short the fut contract

how can it be naked? the short put is covered by the short fut and the short call is covered by the long fut

looking to profit through loss of timevalue and decrease of volatility

maybe the same strikes is better on the p/l

a covered calendarized short strangle

1 of the problems is obvious right now as the put or call moves more in to the money, the 1 leg appreciates faster than the other which is the case of the put at the moment

short ES sep @1250 long es dec @1245 short sep 1255 put @37 short dec 1240 call @65 rationale: selling options and profiting from deflating time value will do more calculation which series to sell to have the maximum profit from time value and volatility any suggestions are more...