I won't be a regular, but I couldn't believe this thread wasn't satire. This absurd RSI talk... choosing a bear call spread over a bear ps because he wants a credit?!
The second I heard TA mentioned that was it for me, stopped engaging with that clown. Funny how many got sucked into his circus. He must have read a snake oil options book but has zero clue how to evaluate, let alone, build an edge.
I may be misunderstanding the point as I'm entering the conversation midstream but those p&l graphs and your commentary are only relevant if you're planning on blindly holding to expiration. What matters is the current p&l curve, which will look much different to the charts posted, and how the p&l will be affected during the life of the option based on your prediction of how IV and the underlying price will evolve. I realize that's extremely elementary but a lot of newbs get way too hung up on option graphs at expiration when it just isn't that relevant.
It's like a 12 step program. They always enter vol-markets shorting ICs and then rage on anyone who will listen. Dude. Puts are calls. You show your ignorance when you discuss married positions. The difference between a put and a call is spot. Why did Yass from SUSQ invest in Madoff when Bernie's "split strike conversion" was simply a synthetic bull spread? Who knows. Smart ppl sometimes do stuff contrary to self interest. Nobody expects you to know anything, but there is no utility in proving your stupidity and you are more likely to get a pass than Jeff Yass. Just STFU and read. NOBODY here is pot committed and BSing themselves but you. Put + stock = call sstock + call = put I can derive the forward vol on a post-earnings open in single name with my vol-arb (applied to SN). I am usually within 100beeps of the opening vol-print. My mother in law thinks I've hacked into the exchange.
The RSI talk was in response to convex/concave slope talk which I was letting the poster know that the RSI already has that built in if you know how to read it. Who chose a bear call spread over a bear put spread? I haven't taken any positions because they all looked terrible under analysis. That was the point of this whole topic.
I would think the point would be making the most profit possible with the time and money you have allocated. So your position is impacting the skew...kind of like punching yourself in the face?
There’s a quote that goes something like this: you can learn anything on the internet if you are willing to be flamed.