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Strategies & Market Trends : Option Spreads, Credit my Debit

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To: OX who wrote (1702)9/25/2000 9:51:53 AM
From: Vol  Read Replies (1) of 2317
 
I begin to question any strategy when words like "failsafe" and "win/win/win" are used.

I agree. Those are red flag words to me.

IMHO, I contend that if one were "expert" enough w/ index option trading, one would probably be able to negotiate a decent profit w/ limited risk using this strategy.

Seems like the strategy could be somewhat mechanized to take out the emotions and guesswork. Can anybody recommend option software where you could input rules and then backtest them?

the problem lies in w/ significant movement of SPX (+/- 25 pts)... w/ a significant upmove, your long options will lose more value than your short UNLESS you roll up in a timely manner. likewise, w/ a sig downmove.

Yea, and I wouldn't want to be too tight on my rolling up. easier to get whipsawed into making my broker rich. I don't think rolling down is as important.

Vol
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