And that's exactly the point that you missed previously. The strategy that you say isn't equally good for that type of market isn't a bad strategy. It's just not the appropriate one for the circumstances at that time.
spindr - thanks for your rockin explanation. For instance - I'm not trading in a margin approved account and can't sell naked anything. Pretend that I was investor with $1500 looking for strategies. That doesn't buy you alot of coverage, so I have to be creative with leveraging.
NO PROBLEM. YOU'RE JUST NOT SEEING THE MECHANICS NOR THE TIMING, NOR THE REACTION OF THE CALLS TO THE MOVEMENT OF THE UNDERLYING OR THE IV.
Regarding Margin. This spread requires extremely little margin--again, I trade the s&p 500 emini. Therefore, I am bound to SPAN margin. To give you an idea of the margin equirements: You need $5300.00 to buy or sell 1 s&p 500 emini futures contract. To place an ATM call or put, you require the same amount. Obviously, the further OTM and the more hedged the trade is, the lower the required margin. The required margin to place one reverse call or put calendar spread is about $900.00. As you can see, the return on margin can be quite high.
NO PROBLEM. YOU'RE JUST NOT SEEING THE MECHANICS NOR THE TIMING, NOR THE REACTION OF THE CALLS TO THE MOVEMENT OF THE UNDERLYING OR THE IV. WELL THANK YOU CAPTAIN OBVIOUS. Any semblance of constructive criticism was gone with inclusion of the caps. I've removed a lot of my reply because it's possible in your own twisted way you're trying to help. By the way - I really wasn't apologizing to you. I was apologizing to everyone who actually helped me, like spindr0. He understands that it's human nature to try understand things at one's own pace, and answered my question.
IF YOU WANT PEEPS TO HELP YOU, YOU SHOULD PLAY NICE... EVEN THO I'M PROBABLY BE THE LAST ONE WHO SHOULD SUGGEST THIS
Not that it's of any great importance to you but if you want to highlight your text instead of using CAPS, bracket your comments with a b and a /b in brackets. I can't type them in correct order since they do their thing rather than show as text so reverse the two below [/b] your written text