OK guys, we've gone off the rails long enough. Let's return to trading, and any further off-topic comments on the BaconSandwich issue will be removed.
I called a touch of 2828 SPX (today) with nooby in email yesterday, and had some local bear diagonals running. The SPX long APR31/MAR5 2825/50 puts from 17.70 going off today. They had traded above 26, but waiting for the close. Also went long the APR31/MAR5 2850/60 long call diagonal to hedge and covered the expiring 50C yesterday. And yes. I will publish the PNL.
Oh yessss. Perhaps I should take Spicy McFlufferpot's advice and post my index and SN vol to myfxbook? traderblue? Sounds like a plan! Oh wait, that's piker bucket shop FX garbage? nvm.
Small timer like me could probably do a 5 pt wide vertical. That's about it, haha. Wait until I hit 6 figures though, then it's game on.
Local diagonals are great to trade. The structure of the local 25/50 is long the deferred 50P and short the front 25P, so it's simply the debit requirement. I trade OTM stuff with the deferred the outside strike and the short inside. That structure requires the strike diff + debit or - the credit. A local diagonal trades similarly to an OTC up(down) and out call(put) as we approach terminal value. It's unimodal to delta, but locally can trade bullish very close to expiration. An example--in my 25/50 bear diag--paid 17.70 and it cannot be priced less than 25.00 at expiration below 2825, but it can be worth more than the strike differential as it trades to 2825. So say you're "long" the SPX 2400/2500 put diagonal from -22.00. You have a credit of $2,200 per. The strikes are $10,000 wide less the $2,200 credit, for a req of $7,800 per contract.
Wow, this is great information. No joke. I am definitely looking into this over the weekend. Feel free to stick around and drop some more nuggets of knowledge! I need to expand my options game, and this is exactly what I am looking for.