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  1. O

    Credit spread - deep otm - false sense of security?

    On another topic, can I get some feedback on this trade idea please?
  2. O

    Making Bigger Bets

    I would look at increasing your position size, but you probably want to take more of a look into how to hedge. Becomes more important once your account grows imo.
  3. O

    SPY Reverse Collar

    Going on a big Jeff Augen binge at the moment, loving his stuff. Just finished reading this article and wondered what people think of getting into a trade like this on SPY now? http://www.optionpit.com/node/386597 Trade setup something like this: Sell 100 SPY @ $142 Sell 135 Dec put @...
  4. O

    Credit spread - deep otm - false sense of security?

    Thank you, all very helpful. What software do you use for backtesting?
  5. O

    Credit spread - deep otm - false sense of security?

    Yep. So I guess your ideal scenario would be a Black Friday type event. Well, maybe not your ideal scenario, but you would make a pretty hefty profit if markets dropped 25% and the VIX went to 90.
  6. O

    Credit spread - deep otm - false sense of security?

    One other question, since tail events typically occur on the downside, why are you trading the extra calls on the long side? Wouldn't it be better to just buy the same number of calls that you are selling?
  7. O

    Credit spread - deep otm - false sense of security?

    Thanks. Very, very interesting trading strategy. Can you explain a bit more about how volatility will affect this position? Let's look at some different scenarios with a couple of weeks having past (i.e. when we get to about Sept 12th): 1 - Vol is unchanged. Looks like you will be showing...
  8. O

    Credit spread - deep otm - false sense of security?

    Can you give an example of this trade setup? Thanks.
  9. O

    IB the next MF Global?

    hi, new to the forums here. I'm interested to hear what peoples thoughts are on various brokers in the wake of the MF Global debacle. What are the chances of something like this happening to IB? Should I be concerned? How reliable is SIPC insurance?
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