Something is wrong. Either quotes are stale (possible if your source is Yahoo). Or, the option is the result of a spin-off and the...
Really depends on how much time has passed. The more time, the better. But VEGA also plays a role. If IV is high enough, then your long...
Yes. Reduced loss, but loss just the same. For my comfort level, once the strike is breached, I believe it's necessary to close the position...
I agree with Phil and add this note. With your strategy (and many others), it's easy to make money. You will win MOST of the time. the trick -...
Is selling the near term option for 20 cents what you really want to do? If SPX (or VIX) does not undergo a significant move in the next few...
Phil, Ask the people who run the back office at the prop shop if they will provide the haircut breakdowns for you. It's a simple matter for...
All of this is a matter of how much risk we are willing to take and whether it's more important to preserve your capital or aim for maximum...
Took my lumps with a diagonal spead and closed my ITM shorts (RUI 730). What reduced the pain is that I am still ahead for the month from my...
Beware: the black swan is not dead. Mark
Not a problem if you stop paying debits for these spreads. That means using strikes that are further apart. Mark
Volatility. If you (or anyone) had a wothwhile 'maket feel', he'd be a billionaire many times over. Mark
First, I don't believe in accepting anyone else's hard and fast rules. Decide what works for you and continue to use it. Second, yes, for...
Hope it works for you. I find that it hurts to close, but because it limits losses, it makes the overall strategy successful. And that's the...
Murray, Do you buy OTM puts, changing the CC to a collar? Do you buy the same strike put, turning the CC into a forward conversion? Mark
A lot depends on the strikes. With credit spread, when strike is threatened, the risk of loss is severe. With Diagonals (single or double),...
The longer you hold the greater your potential return - unless a) your short strike is threatened or b) the market runs away from your...
How about something simpler: The MM may fill your order because it's a spread he wants for his own portfolio. Perhaps because he believes you...
It never hurts to keep remining people, but it's pointless. Newbies think they've discovered a gold mine and they do follow blindly. Mark
Retail customers NEVER get haircut margin. Mark
Heather, If you begin by buying 10 puts, you will have the equivalent position of long 10 calls and short 1000 SPY. The ROI is EXACTLY THE...
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