The tidbit about the otm put purchase was just to illustrate how I brought my leverage in slightly (the Number), the fact they are half price on a random walk up yesterday compared to the previous day was an aside that I found slightly interesting. I didn't lay out my philosophy. I just started to, but the whole thing was derailed. Perhaps this is more of a synthetic stock play than text-book options play. Can you tell me about accepted risk parameters?
It *sounded* like I caused confusion. I'm not in the industry but I'll remember your recommendation. Thanks
If you dont understand delta then you cant possibly know the effect of buying a random put on your net risk. Not a single position you've discussed is a pure synthetic underlying play. Dont forget the SPY is not a stock.
Thank you, after 10 pages a clear explanation of beta for the everyman. Now Joe Lunchbucket can quit his cubicle/construction site/warehouse. etc. and stick it to those dirty old option MM's. Back to the coal mines for the rest of us
Hey coach you know I repsect you and hate to see you like this but I want to help you back on your feet. X
Actually I get the government cheese at the end of the week, I still have some food stamps left over for some Doritos and Wonder Bread.