I´m very sorry I typed the word ,,spread'' instead of ,,straddle''. Of course I know ,,short spread=long spread''. The question should have been...
What do you mean by this Spread effectiveness, the poor Risk/Reward ratio (small premium)? Isn't the risk of short spread much more higher?
to RichardRimes: What if I am a day trader, see some support/resistance and want to profit from this neutral situation? Then the short daily...
You are right, that for APPL premiums look slightly different, but not for SPX&SPY which are using index as underlying (not future)... So you...
Or is there theoretical negative Gamma danger of short term expiration against longterm one for the same premium?
In different way: Are there any disadvantages to write PUT spread with short expiration?
Here you have another example, where even MID premiums are worse (lower) for the longer expiration times. [ATTACH]
I know I can reach better bid price using limit order, but even with midpoint level the difference (1.625 vs 1.75) is very small. Yes, the price...
Hi, let's say it's Friday and the ES price is 1882 and I speculate it will stay at 1880 or higher within next few days. I choose credit put spread...
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