In his example the margin is actually half, 20 FOTM spreads vs 10 OTM spreads both with 10 points between the short and long.
I've found myself gravitating to the 45d-15d rollover or there abouts, I used to go more towards 35d-0d. The last two weeks on my FOTM positions hardly budge, they are always stuck at .10-.20ish so I haven't been sticking around for expiration.
I completely agree for 2sigma FOTM positions. This changes dramatically for 1sigma OTM. There is generally still a significant amount of premium left, but I believe the 45d-15d strategy still applies with some degree of validity.
Since there's no theta in FOTM spreads, i would agree that going 45-15 is probably better. With regards to closer OTM spreads(20-40 points), i see no benefit in going to 45-15 from 30-0. If anything it's somewhat detrimental as i now have to worry about getting mid point twice on a wide b/a spread(once at 45 and then at 15, most likely you will give up credit both times). The spreads are narrower with <7d to expiry i.e. better time to close/roll if necessary. -vega exposure is insignificant this close to the market. my 2 cents on the subject
Well if you go to the most posts per page in the option section it will get you to 149 pages which might be easier to read lol... I keep debating about starting a new thread on the 1 year anniversary but afraid we will lose all the old good stuff lol..
None of the indexes in the box on the left are working. Happened just a little bit ago. Not sure if that is affecting the chains or not, doesn't look like it at first glance.