- Or, you could buy a put, buy the stock and sell an OTM call. But, the numbers won't add up for a retail trader. And, the time premium for puts...
It has been my understanding that: - If there is a pending dividend and the time premium of an ITM put is less than the dividend then there's an...
A long synthetic stock position and a bullish vertical have very different R/R spectrums. The bang for the buck depends on the size and direction...
At one point on Friday, the B/A spread was $1.20. I'm not motivated to trade at such prices, particularly when the aggregate position is fairly...
I think not. Using your formula and using the midpoint of the call, the put would be worth be worth $7.57 (midpoint). And yet the put's quote is...
I own some ratio put protected stock (more long puts than stock). I want to keep the stock and roll my puts down 5 points, lowering my cost...
Ummm, not really. Per the CBOE: For purchases of puts or calls with more than 9 months until expiration, deposit / maintain 75% of the total cost...
What exactly do you think margin is? It's the SMA in your account from cash or marginable securities. I suggest that you Google "Margin...
A covered call is synthetically equal to selling a short put. If you sell a cash secured short put after establishing a covered call then you...
Ignoring commissions: A long vertical must be paid for. That is the risk. The potential profit is the difference in strikes less the premium...
The margin requirement for a short vertical spread is the difference in strikes less the premium received.
Assuming that: - These are equivalent spreads - The P&L of each spread is similar - There are no dividend compications Then the call spread...
I have an IWM annuity situation that I'd like to hedge. My cost basis is $149 and the IWM's current price is $166. If IWM is above $149 on...
It's a Captain Obvious statement to say that calls will be priced higher because owning the stock has a larger carry cost. What's lacking from...
If you want full participation in the market, you have to take on the risk. Here are some more conservative strategies with varying degrees of...
I'm not really sure what you're asking or telling me but rather than guessing, here's the summary of the sequence on one position closed:...
I had no success closing my various long, worthless 2020 options yesterday, probably because I was trying to buy low priced inactive options as...
Wash sale violations are meaningless if involved positions are closed out by EOY. It's the carryover wash sale violation that you have to be...
The problem here is that you're throwing a lot of spaghetti against the wall, hoping something will stick, while avoiding the issue. Take...
Different ETF provider? An Ishares S&P 500 ETF is substantially equivalent to the SPY. It has to be a different index in order not to be...
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