Only spreads - verticals and diagonals. Mark
Nope. In '87 it was worse. Had tons of naked puts. Not a happy outcome. In '78 and '84 I was short a boatload of calls. Today, as a...
Im general, I don't hedge against the losing position. What I hope to be able to do is sell put spreads on the next decline. My goal is to...
Yes. But, I much PREFER to open a new position with higher strikes. Let's say I my minimum requirement is to collect a credit of 2% of the...
If under-invested, I sell every 50-60 DOW points. If not, then every 100 points. I sell the same spread again when I like the new credit that...
I sell call spreads on rallies - regardless of how bullish I am or how high I think the market is going. After 30 years in this business (most as...
I find that having NO OPINION works well for me. I sell call spreads on rallies and put spreads on dips. Because I sell all spreads for a...
That's a huge loss (sorry to hear that it was so painful) for a spread that did not even go thru the strike. My guess is that you sold way too...
Depends 100% on strikes chosen. If underlying index approaches your short strike a few days before expiration, diagonal is going to be a huge...
Not true when you limit yourself to doing spreads for a cash credit. But, even small debit spreads don't lose - unless the market move is huge....
When initiating diagonal spreads, if you buy exta options, you have a posiiton that is closer to delta neutral. That method yieds excellent...
Hi Arizona, Yes, it's nice to play with the grownups. I'm referring to diagonal credit spreads. Mark
Hi AZ, Every invetor has his own answers, but 1) I prefer 6-7 weeks out, but also do them for less time, if other criteria are satisfied...
Most of the abbreviations used are symbols for stocks or indexes. Examples: RUT, MID, RUI. Those are not abbreviations; they are symbols for the...
I agree. Thanks. Mark
Hi, I find RUT MMs reasonable. That means they (almost) always show a bid for my spreads that is 15 - 20 cents better than the natural b/a....
Murray, Very interesting points. I carry many small positions each month (I sell spreads for cash credits only and I also sell more call...
What if IV were so high that the corresponding call was $15 bid? Wouldn't the arbs be willing to pay a time premium for the put? Mark
I get an occasonal fill in SPX, but it's a very annoying process. Perhaps it's my diagonal spread orders that makes is so difficult. I received...
Any diagonal - put or call - can be put on for a credit. Obviously, the amount of credit (or debit) depends on the distance between the strikes....
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