Diagonals versus Vertical Spreads

Quote from kalikahuna:

so...is it CTM (close to the money) or NTM (near the money) or JOTM (just out of the money)?

:p
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wow...OK,Ok, howz about

JOTM >$1
CTM >$2<$1
NTM >$3<$2

:p :D
 
Well some I use are:

AFITM - Almost Fuckin In the Money (which is what I use for my short strikes when the market moves against me.

WTFOTM - Way the F@CK Out of the Money (my credit spread strikes)

PDGPJEOTM - Please dear God Please Just Expire OTM..
 
Quote from kalikahuna:

yip pretty much hit it on the head....GREED!

Just because you are successful at one system doesn't mean you shouldn't try to compare it to others and see if you can find a better one...without acting on our desires to try new things and better our already "decent" situations, we'd all still be living in caves and wearing animal skin loincloths, writing our opinions on stone tablets.

And, yes, i have been reading the SPX credit spread journal...which is what led me to comparing the two strategies in the first place...eh, I'll probably end up trying diags occasionally if I see a really good opportunity...right now tho...I have very little clue what's gonna happen the next day or couple days with the SPX.
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Nahhhh.... I don't think it is only about greed. It's about versatility for me. If I'd stopped at the first thing that started making me money, I wouldn't be even close to where I am now.

I'm not going to sit here and tell you to pick one, because I think you should have the ability to trade both. You should also be able to do b-flies, combo to fly conversions, debit verticals, put ratio spreads, and basic long puts/calls.

Many people on these boards fall in love with a single strategy and use that strategy in conditions for which it is not well suited. I know very few traders that are very good at staying out of the market for long periods of time if the preferred strategy doesn't match the market conditions.

Anyway, learn them all and use the one that has the best total r/r if your forecast is correct. Remember to look at all the different ways that you can make/lose money on the trade.
 
Quote from optioncoach:

Well some I use are:

AFITM - Almost Fuckin In the Money (which is what I use for my short strikes when the market moves against me.

WTFOTM - Way the F@CK Out of the Money (my credit spread strikes)

PDGPJEOTM - Please dear God Please Just Expire OTM..
More...

I believe AFITM would sound better as AITFM. :D


(by the way, when I ran spellcheck on coach's message, it was hilarious)




Failure is not falling down,
Failure is not getting back up.
 
Quote from kalikahuna:

yip pretty much hit it on the head....GREED!

Just because you are successful at one system doesn't mean you shouldn't try to compare it to others and see if you can find a better one...without acting on our desires to try new things and better our already "decent" situations, we'd all still be living in caves and wearing animal skin loincloths, writing our opinions on stone tablets.

And, yes, i have been reading the SPX credit spread journal...which is what led me to comparing the two strategies in the first place...eh, I'll probably end up trying diags occasionally if I see a really good opportunity...right now tho...I have very little clue what's gonna happen the next day or couple days with the SPX.
More...

Trying it yourself is the best way. I just did a pure diagonal yesterday. You need to have an opinion whether you are doing diagonal or credit spread. I think the market is very choppy and going nowhere before Fed meeting.
 
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