Recent content by DrvTrader

It depends on the underlying. if you are going DITM on a high dividend yield instrument and are taking leaps (9+ months out). Then there is a good chance that you will have a smaller return wrt to the underlying itself.

Your example is a good strategy and I get your logic. There is just one point I dont get (now this may sound like a newbee). For a 530/520 Put spread, you need $1000 margin per contract Now if u are using $20000, u should b trading 20 contracts and not just 10.... am I missing something here?

If this is true, i.e. 10k margin, could this be an infinite loop?? i.e. start with 10k in ur account. Take the IC, now u have 19k cash. Take a second IC, use 10k, now u have 27k cash. Do it a third time and u have 36k. Now invest this safely in an instrument which will cover ur cost of ITM...