What Option Strategy Do You Use?

Yup.... legged out of conversions for 100 dollars plus..Merril came in buying to close,market orders..
I think 200 vol plus..

They came back weeks later and had the AMEX ask for significantly better fills.

I left the Amex

 

Totally agree with you on that.

That is why I became a buyer of garbage calls and puts. Risks are bounded from the get go.

 

Yes, I now remember as I had played with it some weeks ago:
OTM SC + OTM LP : https://optioncreator.com/stmw6ky
synthetics using SS + OTM SP + OTM LP : https://optioncreator.com/sthyy3m
BUT: in both cases requires a MarginAcct (in CashAcct not possible)

Hmm. but how does this work with the already present option together (ie. the said ITM one)?

 

Ive taken some monster hits short near by gamma,and in the words of Carly Simon,"I havent the need for the pain"

 

Jacobson?

 

Usually the brokerage who manages your company's stock options will work with you on margin, etc.

 

The ebb and flow of the price action gives you an out all the time. Even if you have a flash crash, it's back up in no time. So where's the risk? The only risk is BK

 

Can you check whether the following depicts the situation correctly?
https://optioncreator.com/st1xfpt
Of course the IVs can be different.
By setting Qty=0 and then 1 you see the change in the PnL chart...

 

Yes,but only cash secured,which essentially treats .20 delta a 1.00 eliminating leverage and hence real "bank"