Options Wonderland

[leemalone2k3]

All I'm doing is showing a different way to trade that I think may be beneficial to others. I spent some time on the floor of the CBOE with some market maker aquaintances and they showed me 95% of thier trades involve some type of spread, be it vertical, diagonal, butterfly, condor, or ratio, or a combination of these. My thought is that is how I want to trade.

We each find our own niche here and there is no right or wrong trade. I personally like to manage my risk. Most of my trades are diagonals, and verticals, but many people here play front month, where verticals could help reduce thier risk, especially where option premium is at extremes.

Using my example on C puts, I have brought in premium 3 times today by selling and covering 7.5's and 6 puts against my 5's. Paltry is not a word I would use to describe the gains. I like holding the long put in this instance and playing the short side.

You do have more experience than me (25 yrs) and I appreciate your input.