Think about what you are doing.. 5000 dollar account..Let's say 5 positions.By your math,it's OK to risk 1000 per postion(20 percent per) which is your entire account.The number of short spreads will be solely based on strike width per spread.. Punt and pray is not a plan
You are using wrong numbers! I said a 5 digit account, but your example is a 4 digit acct. For simplicity just use an acct of $100k (ie. 99,999 ) and 100 equal sized positions of $1000. Now tell me your objections. Wrong! It depends on the margin requirement (or cash requirement in case of a cash acct). And it's irrelevant in this case b/c the point is about risk management by diversification.
Multiply my numbers by 10.. So you will lose 50k instead of 5k.. The good news it will take the same amount of time
You are talking BS. Just use the correct numbers as shown, not your made-up fantasy numbers. Here again: For simplicity just use an acct of $100k and 100 equal sized positions of $1000. Then tell me/us what's wrong with that plan according to you. IMO this is a very good diversification plan.
Idiot! You just landed in my kill file! Enjoy! If you want to discuss with me, then you have to be serious! That simple.
The only thing simple is your brain... You are the same idiot who asked about assignment risk on your short 2.5 -1 put spread when the stock went out at 3.... A mind is a terrible thing to waste..