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TradStSOX: Your strategy will make money only outside the range of 90-110. The stock should be either below 90 or above 110 at expiration to be profitable. What if the stock stays at 100? The call will have intrinsic value of 10, but PUT would have lost all its value making the trade...

(ref: see page 25) Should we sell the time value in the short term ATM (or little OTM) call and pay less for the time by buying ITM LEAPS? Your post says it reverse. May be this will be clear if you can give an example. My gut feeling is this is the best strategy (and I am...

I received an email from a service provider who has a successful LEAPS calendar/diagonal spread. but now he is offering similar type of service, i.e. Covered call on forex. Here is the description of the methodology: ================================= "With Forex, typically you can get at...

As it is a long thread, I am still going through it, also since it is an old one, I am just curious: 1. is there any update/track (like a spreadsheet) on performance of the credit spread suggested on this thread? 2. has it worked so far to get 3-5% return as expected? 3. was there any...

I must add that the orignal plan was to write calendar spreads or covered calls against leaps with DITM calls. Then a put side was added for the same type of trade. It looks like either I will end up with a strangle, and then DITM options may not help, or I may end up with the credit...

the only reasoning is that DITM will have more intrinsic value, so overall the time value lost will be minimal.

Can someone help me understand the R/R on this one? Here is a scenario: Say Index is @200 in Dec. 07 Buy 1 Jun08 call @150 for 54 Buy 1 Jun 08 Put @250 for 50 Sell 1 Jan 08 215 Call @1.50 Sell 1 Put 08 185 Put @3.00 If the index remains between 215/185, written ones expire, and...