Davewill

Belay that last question. Found excellent info at http://www.optiontradingpedia.com/delta_neutral_trading.htm

Kim, I have a newbie question : Why create a delta neutral portfolio in the first place? Somehow it seems to me that neutral = no change/no profit. At some point something must generate a profit for the whole system to work. Obviously it does (my account is significantly up since joining your club.) But I don't really have a deep understanding of why. (Unlike my understanding of directional trades.) Please could you expound a little on the reasons/philosophy, pro and con of delta neutral. Or point me at a good info source. Thanks in advance. Best Dave

Question on RUT weekly expirations date and settlement values. As I recall, the trades expire on the friday at COB of the closing week, but the settlement value can fluctuate through to the following monday depending on the actual close values of ALL the RUT components. So it is possible for you to think that you have a close based on RUT at 780, but the actual close could be 20 to 50 points different if some catastrophy happens over the weekend. So the safest strategy is to close all trades before expiration. True? Is this true for weeklies as well as monthlies?