fradav 1 Report post Posted September 18, 2013 (edited) Hi Kim, I'm in the RUT IC. As a hedge against a post FOMC rally I'm thinking of initiating a SPY put diagonal trade similar to what Chris trades, buying Dec 14 170 puts and selling Sep wk4 173s in a 20\15 ratio. If there's a rally it's a good hedge and if the opposite happens the IC goes back in the profit zone and the SPY losses are only temporary (if I recover enough extrinsic over time). VIX isn't that high so Dec puts are not that expensive and could be ok time to enter trade. Any thoughts? Edited September 18, 2013 by fradav Share this post Link to post Share on other sites
Kim 7,943 Report post Posted September 18, 2013 I plugged it into ONE software and this is what I get: The potential gain is pretty small even if SPY is exactly at 173 a week from now, and P/L zone is pretty narrow. Not sure I like it. Share this post Link to post Share on other sites
fradav 1 Report post Posted September 18, 2013 Ok, thanks for rapid reply Kim. Share this post Link to post Share on other sites
tjlocke99 18 Report post Posted September 26, 2013 kim what is this ONE software? i google'd it but don't see anything on it? I plugged it into ONE software and this is what I get: chart.PNG The potential gain is pretty small even if SPY is exactly at 173 a week from now, and P/L zone is pretty narrow. Not sure I like it. Share this post Link to post Share on other sites
Kim 7,943 Report post Posted September 26, 2013 http://www.optionnetexplorer.com/ Share this post Link to post Share on other sites
