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Hi Keanan. You pose some excellent questions. Unfortunately, the answers are more subjective than objective. If an order to buy back a credit spread within the Boxcar structure is triggered I generally wait until I see a bit of stabilization of the underlying before rolling down to a strike...

Hi Kerry. The HEDGE has not been updated since I am now retired. Prices of the BWB (or any butterfly) will definitely fluctuate according to implied volatility changes, etc. The HEDGE I outlined may not be suitable in the current environment. Many other hedging protocols have been devised by...

I suggest that individuals interested in applying the concepts employed by a Monte Carlo simulation program such as Option Risk Calculator study the documentation for strategies having legs with different expirations, such as calendars and diagonals. Unless the "volatility stars" align for both...

As I have often stated, all Monte Carlo simulations must be taken with a grain of salt, since they represent a scenario based on a static point in time and with the assumption of no adjustments, additions, subtractions, change in volatility, news, etc. Those who have heard my previous...

You may not have asked the simulator to "run the full trade" which takes into account the back leg. When you choose that option instead of simply running the simulation on the front leg, you will have to answer a few questions about STOPs at certain P/L or STOPs at x% in-the-money, etc. When I...

Hi status1. I use my TOS risk graph and alternately check/uncheck the credit side and the debit side of a potential trade and project the time horizon 3 to 5 days in the future. I am looking to see critical trigger points (in terms of P/L, not greeks) at which I would make an adjustment. For...

A somewhat higher risk to reward ratio for Boxcars is generally acceptable if contingent orders are in place or if the trader's eyes are glued to the screen. My original presentation with a 1:1 ratio was an idealized version. Remember, at that time I did not know that Amy would begin a...

Thanks for the clarification, JoeA. I thought it stood for "Old Guy". Just kidding. To address the subject of the thread, I should emphasize that the goals of the Boxcar (or any strategy, for that matter) should be: 1. high reward to risk ratio 2. low draw-down in worst case scenario...

That may be helpful, Joe. However, if you study how far into the wing of a an OTM debit spread that the market must move (and the length of time it takes) before the DS becomes profitable, you might be a bit surprised. Of course, if the market continued down, your DS would eventually achieve...

Hi Joe. If you are a member of Amy's Service, she may have specific recommendations for you. I have had my best results with trigger orders based on specific price levels of the underlying. I have not used Tastyworks. If you are, in fact, unable to enter GTC orders based on a trigger price...

I will try to join, Amy. Let me know.

I give the market makers a bit to make sure I get a fill. I place the trigger points for the GTC orders carefully to try to avoid a meaningless fill after an inconsequential move of the underlyng. While it is possible to receive a bad fill with a widened bid-ask spread, I have found that I...

Yes, I am still trading SPX Boxcars in addition to selected stock Boxcars. The SPX trades are doing well. When I analyze a new trade I use the TOS risk graph to show the premium received from the put credit spreads independently of the premium paid to purchase the debit spread by clicking on...

Please note that my comments were apolitical and meant to address, in general terms, the concept of "herd immunity" as it relates to a population of susceptible individuals. My comments were intended to illustrate basic tenets of immunology and epidemiology. I have my own views, of course, but...

Most of my Boxcars are doing well. Small losses on those that do not perform well. As always, candidate selection, risk management and profit-taking triggers are key elements in any successful strategy in order to achieve positive expectancy. Downside moves are addressed by peeling off put...

There are 2 problems with the concept of Coronavirus herd immunity in my view. First, although neutralizing antibodies are present in people who have been infected and recovered, the actual neutralizing antibodies (IgG immunoglobulins) are proteins which, by their very nature, decline over time...

Profound pontifications above from individuals who, I suspect, do not have M.D. degrees. Here's a question to ponder: if you are having open heart surgery are you comfortable if your surgeon decides not to wear a mask, gloves, and surgical cap? Face masks (cloth at the time) and gloves were...

I recommend the VScore free download, which, if similar to the SimplerTrading app, graphically displays the distance of the market from the VWAP in standard deviation increments. Instead of purchasing the Volatility Box for >$100 per month, check out Autochartist.com.

Hi Jim. Your study is similar to TOS "Monkey Bars" (and similar studies on other platforms such as NinjaTrader and Metastock) which incorporates and sums aggregates of "TPOs" (time-price opportunity) according to time of day. These were popular several years ago, but not so much these days. I...

Hi Jim. Theotrade has offered a workshop on pairs trading in the past, and it may still be available. I have tried it in the past. The concept is solid, but I did not make any money on the few that I tried. Don't know if my selections were bad or if I did not manage them correctly.