So, what would you recommend? The 120 put is trading at $2.42, and the 115 put is asking $0.66. So the max profit for a 120/115 bull put spread is $176/ contract, while the max risk is $500/contract. That gives a yield of 54.3%, and the breakeven point is $118.24. Would this trade have positive expectation, as the yield is a little more than 8x higher?
AAPL 470/480 call spread. All durations are >1. Virtually any spread slightly ITM. There are literally millions of spreads on listed share options that satisfy that criteria. I am not comfortable being the patsy. Eat like a mouse and shit like a dinosaur. I like tautologies so I'll leave assuming that absent knowledge you're going to "do what you're going to do"
I wonder...is there any spread screener that can look for bull put spreads where the net credit exceeds the difference in strikes? Then it'll make a riskless profit. I am a newbie at options trading. I've been a buy and hold for income gal for years.
Where on earth do you live where ciggies cost $14.50/pack?! And yeah, Squillie informed me that trade was stupid. The new one has a much lower risk/reward.
Should I look at the vol smile, and write the puts that have the highest IV, and short the shares to hedge?
Oops, my bad, I mint to say that OTM credit spreads have a R/R<1. Anyway, I will continue trade the way that I've learned due to the fact that it is working for me. I'm not knocking your method or saying that my way is the only way. That's all.