How is this strategy possibly sustainable?

Discussion in 'Options' started by wxytrader, Dec 22, 2023.

  1. Selling a call spread ATM will out perform buying a put spread ATM about 4:1 as far a probability of profit.
     
    #21     Dec 24, 2023
  2. destriero

    destriero

    lol
     
    #22     Dec 24, 2023
  3. taowave

    taowave

    Oh boy......

    You are confused..

    Buy one vs sell the other..

    Not buy vs buy

     
    #23     Dec 24, 2023
    destriero likes this.
  4. destriero

    destriero


    This convo is just surreal. Unbelievable.
     
    #24     Dec 24, 2023
  5. Quanto

    Quanto

    Man, you are so illogical! :)
    B/c if that (your claim) were true, then why don't you simply play both? :) Since pWin would be 0.75...
     
    #25     Dec 24, 2023
  6. Cuz you're still directional you just doubling your risk.. and then you might as well just double up on the short call
     
    #26     Dec 24, 2023
  7. destriero

    destriero


    Just buy puts and calls at cab/teenies and follow with five-wide verts at a nickel. 100x your risk.
     
    #27     Dec 24, 2023
  8. destriero

    destriero

    OK so say that spot = 100 and the weekly 70/75 put spread is nickel to buy. Which earns more? The nickel ps or the short 70/75 cs at 4.95? You're either trolling or thick and you've posed this same moronic argument in the past.
     
    #28     Dec 24, 2023
    taowave likes this.
  9. destriero

    destriero

    wxyx, which would you choose if the next trade in shares was either 10 points higher or lower (random)?

    And why?

    upload_2023-12-24_10-4-9.png
     
    #29     Dec 24, 2023
  10. Looking at the chart I'm selling an ATM call spread if being aggressive versus any long put spread. This is just by eyeballing it. Anyway look at the range for 1 SD and tell me which side of the trade you'd want to be on , or chart the BE on buying a put or put spread to see the likelihood you'd be paying into Christmas charity for the big boys.
     
    Last edited: Dec 24, 2023
    #30     Dec 24, 2023