HowardCohodas Index Options Credit Spread Trading Journal

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This is what I ended up with right now after legging in...not quite sure what it is.

LONG 4x MAY11 1250C
SHORT 4x MAR11(weekly) 1290C
LONG 6x APR11 1250/1240P spread


If it gaps up pass 1300, i close the diagonal leaving the put spread to expire.

If it gaps down to 1230, i close the whole thing.

if it's flat, i continue to write the weekly calls and make some coin on theta and the high iv.

Dont like it's long vega which will hurt when the implosion happens. Any suggestion on a similar position that accomplishes the same but more vega neutral and simpler (fewer legs).
 
Howard has had his thread shut down on trade2win.

We will have to see what happens here. I'm not sure if it was for excessive lulz or it was because something went horribly wrong...
 
Im saying I almost always intend to buy the bid or sell the ask, or ideally both.

Arabian nights.

I find that interesting. I´ve been waiting for the daily to settle down and make a 25 cent to 30 cent range in the SPY and then buying the low premium with a limit order and marking up .12 cents and selling on a limit order. It has worked out okay, but somedays I have to hold over another day. Trading with the trend of course.

That was valuable information. You got any more nuances on this you are willing to share?

ATTICUS Ay yi yi!

"The 20-25 delta risk-reversal plays the index outright, simply 1/2 size and at a large +expectancy due to the vol-surface. You can earn more that trading ES futures outright(=delta)."

I didn´t quite follow that! Would you be so kind as to elaborate as in trading for dummies! :D Presuming this is straight buying and selling, not using spreads. It sounds interesting?
 
Quote from falconview:

"The 20-25 delta risk-reversal plays the index outright, simply 1/2 size and at a large +expectancy due to the vol-surface. You can earn more that trading ES futures outright(=delta)."
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I'm not sure I fully get it either. Does he mean selling the 1220 put and buying the 1225 call?. I don't think so.

A risk reversal (buy) is selling an OTM put and buying an OTM call.

A risk reversal (sell) is selling an OTM call and buying an OTM put.

They are similar to a synthetic future, with a plateau in the middle of the P/L profile.

The gap and go seems in progress...strategy used: none...profit achieved: nil... Perfect example of good read and impossible execution with options.
 
Quote from arabianights:

in other words, rather than writing crappy options on the index, trade the index with very short term trades, a few ticks for targets and stops, almost always with the spread in your favour for at least one of entry and exit

then go home at the end of the day flat :)
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Of course if you can make 4 tics daily consistently trading the ES mini directly with 100 lots (a measly 20 lots of SP pit contract), then you are making more than $1,000,000 per year. If you can make 10 points per day, like most ET posters pretend they are doing, then you are making more than $10,000,000 per year.

You can forget about crappy options in that case. A total waste of time.

Easier said than done, but if you wish to explain how you do it consistently I'm all ears and eyes... I swear I will not tell anyone.
 
Quote from arabianights:

Howard has had his thread shut down on trade2win.

We will have to see what happens here. I'm not sure if it was for excessive lulz or it was because something went horribly wrong...
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I think you are sure, but prefer lulz. I use my real name. My account is open under the conditions that I proffered. And the reasons for shutting down the thread are stated. Additionally, responding to trash talk to reprove things already proven eats up too much time.

Many of the T2W trash talk cheerleaders have migrated here and shifted the balance. AFAIK, ET does not have a starter-only thread provision, so I am unlikely to continue to eat up my time to no benefit.

Those that want to know about my trading can PM me. I am seeking a new venue where I can post my trading, and answer questions without dealing with the trash.

As I know the trash talk will continue here, my response will be to periodically answer with my challenge to help them prove their suppositions. None, I repeat none have taken my challenge yet.
 
How about a short review of your option trading last week Howard?. All will benefit to read how you handled the problems that were encountered.

As I said, nobody wins all the time, and how you handled yourself under fire, and the honest results you obtained will go a long way towards establishing some credibility.

I'm sure you will agree that "I'm on the road", or "I don't have time to post" in the middle of a difficult period for your strategy is not the best response.

You have a lot of clowns in ET, use that as entertainment if you want, but there are serious people here too, that have been through difficult times, and know exactly how you are feeling...and have a pretty good idea on what you just went through.:eek:

That which we joke about is as much a joke on you as a joke on ourselves. It's good to keep the spirits up!.:p
 
Quote from eudaemon:

As I said, nobody wins all the time, and how you handled yourself under fire, and the honest results you obtained will go a long way towards establishing some credibility.

I'm sure you will agree that "I'm on the road", or "I don't have time to post" in the middle of a difficult period for your strategy is not the best response.
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It always amuses me when I am advised that the truth is not always the best response no matter how inconvenient it might be. I am what I am and attempt always to be truthful.

I need to evaluate the benefit to those who will learn from my mistakes and my successes and the cost in frustration and time here defending preposterous suppositions and malicious lies that are outside the standards of lulz.

I will continue posting my journal with analysis of my mistakes in some venue. I'm just not at the moment seeing the benefit of doing so here.

Anyway, trading to be done plus 9-11 hours of committee meetings and a presentation to prepare and catching up on my bookkeeping all to do in the next three days. Where do I prioritize getting trashed? :eek:
 
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