why are vertical spreads not so common ?

Discussion in 'Options' started by cpphey, Aug 16, 2019.

  1. cpphey

    cpphey

    Do online brokers not let you write 100 vertical debit spreads explained here maybe because only the shorting part of the spread would require a huge account balance or margin (spread as a whole wont require a huge balance)
     
    Last edited: Aug 16, 2019
  2. guru

    guru

    Why do you think vertical spreads are not common?
    Or perhaps you wanted to ask whether they’re common before making such claims?

    Brokers do let you write a lot of vertical spreads, up to the amount you can lose on those spreads, not related to shorting the stock. Even Robinhood lets you buy or sell as many vertical spreads as you want, with only the cash needed to cover max losses of those spreads.

    And why are you making such strange statements instead of simply asking questions without making false statements?
     
    BlueWaterSailor likes this.
  3. cpphey

    cpphey

    @guru while I thank you for your insight, what statements are false or strange. I have knowledge of headwinds with "some" online brokers which is why I asked that question
     
  4. Robert Morse

    Robert Morse Sponsor

    If your account can handle the margin of the trade, I'm not aware of this as an issue.
     
  5. guru

    guru

    Your statement posed as a pretend-question "why are vertical spreads not so common ?" is false, and is not dependent on a broker :)
    Here are the most popular SPY option combos traded today and there were thousands of vertical spreads traded on SPY in just the first 30 minutes after market opened (all Bull/Bear Puts and Bull/Bear Calls below are abbreviated vertical spreads):
    upload_2019-8-16_6-57-20.png

    Therefore when you post a false statement and try to make it look like a question, you invalidate your own question...

    Your statement "Do online brokers not let you write 100 vertical debit spreads" is also invalid/false, unless you'd add specific context and not hide your "knowledge of headwinds with some online brokers"...
    Basically your own communication makes it difficult to address your questions and shows that you're making so many assumptions that you cannot be a trader, because the whole purpose of trading is not to make assumptions...
    If you'd like to ask a question then ask an actual question without making assumptions, hiding some facts, etc. :)
     
    Last edited: Aug 16, 2019
  6. ironchef

    ironchef

    Not trying to give you a hard time because I like your posts and learned a lot from you, but this?
    True statement?
     
  7. guru

    guru

    It’s preemptive because people will always call you evil, especially when you’re trying your best to do good, so let them have it :)
    Unless I am, or pretend to be, this guy:

    (I’ll think of something better for my profile, so thanks for the pointer)
     
    Last edited: Aug 16, 2019
    ironchef likes this.
  8. cpphey

    cpphey

    Ok I am gonna go off beat but @guru does not know logic ( academic field) where my statement is neither true or false...

    @guru , given the kind of person I detect, come back with a logical argument ( propositional, first order etc ) before you decide to exercise your freedom of speech .... to vomit here.

    Enough said.
     
  9. ironchef

    ironchef

    If you already knew your answer and are here to show off, yes, you don't have to listen.

    If you are trying to learn something useful, to make you a better trader, sometimes you need to have thick skins. Perhaps @guru was a little harsh but folks will call you out. I had been called names more times that I care to remember. @guru took the time to layout the data to show you what happened. Just for that you ought to thank him.

    This is an amazing community, I could write a book on all the useful info, techniques I picked up here. And it is FREE!. I am new to options, full time option trader only since 2013, so still have lots to learn.
     
    guru likes this.
  10. cpphey

    cpphey

    #10     Aug 17, 2019