The following is the OptionBT sighting of    "Under The Radar".
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Title   :   "Under The Radar"
Position Description   :
     Position taken   :     November 24,2003
     Twelve Months out,
     125 point vertical bear put spread for credit,
     Margin required per pair $12,500/pair,
     Short side out of the money by approx. 75 points at time of trade.

     Expiration/Settlement    :    Dec 17,2004 / Settlement = 1190.45

Count   :                           550 pairs
Credit or (Debit)   :            $1,540,000
Margin   :                          $12,500 per pair * 550 = $6,875,000
Results   :                          Net = +$1,540,000

Comments   :   "Under The Radar"
  "Under The Radar" has a year to test his theory that the market will move up in 2004. The $6.875M margin is proof that there is a lot of conviction here.

I really like the approach that "UTR" employs. It is like he is saying, "I don't want to be greedy I just want a little 550 count spread, please.". This is a conservative play really. Other traders about this same time period were willing to post up much closer to the money than "UTR".

One advantage to this wide 125 point spread is that if necessary "UTR" could take profit at some point in the future at a time earlier than a spread with less points between the strikes. As time progresses these two puts will converge in price. If both puts stay out of the money then they will both converge to zero. The greater the spread, and the farther out of the money, the faster they will converge.

It is highly unlikely that "UTR" will hold this position until expiration. This is a lot of margin ($6.8M) to tie up for a whole year. However, if "UTR" held the position until expiration his return on margin will be 22.6 percent. This is better than most accounts did in the year of 2004.

         "UTR" was right the SPX never settled below 1000.00 during the duration
         of his position, he was never really threatened.

Congratulations "UTR" you stayed under the radar.
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