Recent content by P_Cherry

I´m very sorry I typed the word ,,spread'' instead of ,,straddle''. Of course I know ,,short spread=long spread''. The question should have been ,,Isn't the risk of selling short time straddle much more higher?'' I mean, to sell weekly straddle on Friday, instead of just credit spread. I get...

What do you mean by this Spread effectiveness, the poor Risk/Reward ratio (small premium)? Isn't the risk of short spread much more higher?

to RichardRimes: What if I am a day trader, see some support/resistance and want to profit from this neutral situation? Then the short daily spread seems to me better than weekly one... to options_fanatic: If I build risky spread with 50:50 Risk/Reward accepting the whole risk...

You are right, that for APPL premiums look slightly different, but not for SPX&SPY which are using index as underlying (not future)... So you mean, weekly spreads are more useful, because the week premium is generated more from time and spread P/L is not so sensitive to price changes as in case...

Or is there theoretical negative Gamma danger of short term expiration against longterm one for the same premium?

In different way: Are there any disadvantages to write PUT spread with short expiration?

Here you have another example, where even MID premiums are worse (lower) for the longer expiration times.

I know I can reach better bid price using limit order, but even with midpoint level the difference (1.625 vs 1.75) is very small. Yes, the price (P/L) is more sensitive in case of shorter expiration but it doesn't matter because I have no SL and except the whole risk (1880-1875+1.25)=3.75$ What...

Hi, let's say it's Friday and the ES price is 1882 and I speculate it will stay at 1880 or higher within next few days. I choose credit put spread +1875/-1880. Why should I choose longer expiration and get only 1$ premium and have 7/14 days risk? Isn't it better to get today's expiration and get...