Yes. From what I've been reading, DITM covered calls can return around 3%/month while protecting downside. So I could earn a yearly return of 42.6%, not counting dividends and the put premiums collected.
Yes. This is true. All the professionals are doing it. It's a secret that the hedgefunds don't want you to figure out. Can you post where you read it so it can be removed?
You are aware of what my local hero P.T. Barnum said re what was born every minute? Don't discourage these guys from selling to me my meat.
Any financial product can tear you a new one if one doesn't know how to use it. Doing 1 $100 spread is one of the safest plays on the planet. Nothing comparable to this if one trades stock (you can use a stop loss but you are out once triggered; with the spread, there is a possibility that it comes back into favor).
Not if you learn how to trade them properly. This is a totally untrue statement. Thatâs like saying Futures = death.
Why do you act like this? Bull put spreads are pretty safe...risk is limited to the difference between strikes, and profit is limited to the net credit. The October 13 CVX 110 put is trading at $0.28, and the 115 put is trading at $0.57. My max profit is $29/contract, and my max loss is $500/contract, for a ROI of 5.8%. As long as CVX doesn't drop below $114.71 (currently it's trading at $118.13) by expiration Friday, I stand to make a profit.