No. I don't roll unless forced to do so (short strike breached). I merely carry positions in two different expiration months at once. For...
It's much easier to get decent premium when expiration is about 7-8 weeks away. With only 5, it's much more difficult. Good luck. Mark
In all my years as a CBOE market maker, I was never FORCED to bust a trade. We did it when we felt it was really an error. Things may be...
Here's how it works: The broker asks the party (or parties) on the other sdie of the trade if they would be willing to let the customer (who made...
Here's another perspective: I've already opened all my Nov/Oct diagonals and am about halfway filled on my Dec/Novs. Mark
Suggestion: $520 credit is too large to allow it to get away. Do something. If bullish, then the Oct 760 may scare you into taking your...
I get it. Any terrorists considering an attack would check the timing of such an attack with the market makers first - beause they wouldn't want...
I agree 100% with that phiosophy. But... Sure we play VEGA, but in the real world it's so tempting to wait just a few more days to try also...
Collect cash credits instead of paying debits and you will make a profit if the market runs away from your strikes. Mark
Sure. But, 5% is a lot to leave on the table. I routinely close positions when I am satisfied with the profit AND the risk feels too large for...
Because the credit was only 20 cents. Yes, the probability of success is very high, but the reward is far too small (IMHO). Mark
Concerned, rather than happy. I know plenty of people who went belly up selling (or failing to cover) FOTM options for 1/16 and 1/8 during...
I make an adjustment when the short strike is breached. I may stall a bit to see if market turns around, but I don't wait long. My preferred...
If you have an account at IB, please go to the new Voters Poll: http://www.interactivebrokers.com/en/general/poll/poll.php and vote yes for...
In the 1970s and 1980s (I specifically remember April 1978 and Aug 1984) a market surge always resulted in a huge spike in option prices. In more...
Is it really so far on the edge? When my strike is broached, I roll. I don't hold and allow myself to get crushed. I have not been doing...
Yes, of course. The margin is doubled. It's my stlye, but I prefer having fewer spreads with a greater distance between the strikes than more...
How about the 1225/1175 for a much smaller debit? Mark
When you pay a DEBIT for the double diagonal, it's important that you have a good chance to sell out your longs for enough cash to compenstae for...
As an exoeriment (IRA account) I sold my long Sep options, leaving myself naked short the August index options. The trade went through - even...
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