Hi
Summa, that is a huge post. I will go through it point by point.
1. Knowing how many legs are used for a strategy is not enough to trade them successfully. You have to know the options greeks to trade multiple leg strategies. The options greeks have little effect on a credit spread but can have a huge effect on a back spread.
2. Option express is a good tool to start to test and play with different option strategies. Option express was mentioned to me in 2005 in Singapore in a seminar about diagonal spreads on the S&P 500. As I do not trade options on stocks, only options on futures and futures, this tool did not take much effect on me. As far as I know, today they also give the possibility to trade options on some futures.
In Indian you not can trade options on commodity futures. You only can trade them on stocks and Nifty. Correct me, if I am wrong.
Probability is only math and does not include the reality, which can bang you heavily when hit at the wrong moment in the wrong trade. Do not start to think that you are in a safe harbor when using this tool. It is a good tool and I use it very often, but I do not count on it as the Holy Grail.
I am not clear what you mean with that: And also it helps in deciding what kind of repair I should do in my position if I enter into my LOSS zone.
Could you elaborate on that or give an idea, what it does give you? Does it say you have to take this and this position, what repairs are, or what does it say to you personally?
3 That is part of the option Greeks and is called VEGA. Vega has little effect on credit spreads and huge effect on back spreads. If you want to trade options, you have to know the option greeks like your trouser pockets. This is a must !!
4 Ok, but not ok.
5 Very important for position trading, as you will have to know what price you plan to pay for an option at a certain level under certain conditions. Minimum knowledge then is to know, how to place such orders and then we are back in point 4. You will not be able to trade your idea when you not know the details about your order possibilities.
6 Ok.
7 If market goes up and you sell a put above the strike you buy a put, that is ok. It is also ok to sell the credit spread when your sold options get in the money.
By the way: How do you want to that? This you have to explain in details, as this is a key to not sit always in front of your laptop. If you fail with that, how much will you have to pay for your loss? Here we already come to point
eight, as this has to do with your MM.
8 Good ideas, but I not can see and detailed plan here. How much do you want to risk in numbers or in % and how has this to be done?
9 What ever you like here, as this is your personal choice.
10 Do some sport you can do every where. Why ? If you travel and you may not have a swimming pool or a fitness center, what you do ?
Dancing is nice. I had once a girl friend with a mother which was a dancing teacher. Salsa. rumba, tscha tscha, fox trot and how ever those dances was called, we did every thing. After that I went to a dancing school for rock,n roll. There you had to be fit, wow. Any way, we all get older and discipline calls in to make us doing some sport.
11 Keep going on and think positive. Go your way and if it gets rough, do not give up.
Some words from my side about your situation you are in now, as you explain it in the last post: Enjoying a full time job, which has nothing to do with trading and enjoying trading at the same moment needs special strategies and a psyche which can handle that. You may explain, what kind of time frame you want to trade to master this two things at the same time.
Another thing I may mention here: It is not the platform which has to recognize any strategy; it is you which has to have them in your head to trade them non independently. It is you, which make your trades powerful and not any ideas from any platform. I use such ideas to see, what others will trade, so I do some other stuff. I am clear, that this is a long way to ever come there and that is surely one of the more difficult levels you ever can reach by continuing your search and learning about the world of option strategies and how to trade them.
As always, ask and I will try to give some ideas and answers. Later on, I will continue with S&R, but we have time.
Tc and do some sport to keep your buddy in healthy conditions.
DanPickUp