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But a short strangle has unlimited loss potential if the stock moves past one of the short strikes, where as the box spread has no risk and the cost of the box just has to be less than the expiration value of the box.

Today I was thinking, If I bought a delta 1.0 Call, sold an OTM call.(bull debit vertical) At at the same buy a 1.0 delta Put, sold an OTM put, (put debit vertical), I end up with a risk free trade and collect the premium for both short contracts... I did the risk analysis in TOS and I'm seeing...

Because the probability of success is extremely high. Try this. Setup a put spread selling the 2750 and buying the 2740. You will see your credit received will be greater, with a max loss of only 5 dollars or 500 per contract. BUT your probability of success is less. Probably around 80 something %.

The reason the max loss is so high, but the credit received is so little is because you are selling the 2600 put for tomorrow’s expiry. The probability that these puts will be out of the money is greater than 99%. It is 20 dollars x 100 shares per contracts for a max risk of 2000 per contract...

18.4 or 1,840 per contract, X 50 = 92,000 max loss.... For a 20 wide spread you need to collect more than 1.60.

Lol. So how long is it?

How long is a piece of string

Those are screenshots of JNK.

No because clearly the entire trillion dollar stock market disagrees woth you. Investors value shares of stock for a reason. Many reasons. If they did not have any intrinsic value, they would not be worth much if any. Just go back to the basics for Christ sake. Companies issue shares to raise...

Those positions are the top 10 holdings and constitute over 15% of the fund .... and jnk has only underperformed the index it seeks to track by 0.61%... where are you getting this information?... I am using ishares website...

Jnk( high yield corporate bond fund) top holdings are hca (healthcare) , CCo (telecom), Valeant (pharma), sprint (telecom), tennet (healthcare), t mobile (telecom), dish... where again is the energy exposure?....

The the “dividend” for a few of the bigger bond ETFs weren’t cut in the recession of 2008-2009... I think that says a lot

Except for dividends are a small portion of stock appreciation/depreciation and for bonds it’s the opposite... so a chart of a stock is much more reflective of the performance while it’s not so much for bonds... actually completely different... I hate the saying “there’s no free lunch”. It’s...

And if you reinvest distrubutions as the etf falls in price, your yield goes up and you end up buying more shares with a higher yield.

What I’m saying is if you look at the chart of a bond etf it doesn’t accurately represent the performance but cause it doesn’t take into account distributions......

Anyways I went with JNK and VCSH for income plays. Also looking at the charts of these ETFs is essentially worthless because about 90% of the income comes from reinvesting dividends when etf prices fall and yield increases. Hence why these ETFs have a positive expectancy after 10 years even...

I think you just have to filter out the bs but there’s a lot of smart members on this forum. Agree to disagree

This is obviously the first thing I did. Way before asking a question on this " internet forum".... As the price of the ETF falls the yields tend to spike.... I love how you downplay the integrity of the very forum you participate in like its some worthless "internet forum". Very funny.

Ur so smart. I wouldn’t say this is the opposite of what I said at all. Buying an index fund is a choice you have to make. My advice was as apposed to trading.... what you choose to buy and hold is up to you.

They do. Usually their risk reward ratio is around 1:1