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The probability of making money on a credit spread is greater than that of a debit spread. I just made .31 cents on a credit spread at expiry that would have been worth .04 cents as a debit spread.

I know ..and on Christmas eve..

You guys are missing the subtly of my argument...I'm not saying the P/L are different I'm saying the probability of P/L is different.

What happens to the put contract if price doesn't move substantially?

Yes they are both defined risk...not disputing that but the credit spread out performs in probability of P/L not in P/L...it will likely have a worse risk reward than the long put...but that's a fair trade off because of the positive theta working in your favour from day 1.

Hey same question why can't you box trade and go long one and short the other? Or long and short the same stock? You can long an ETF and long the inverse so what gives?

How are the equivalent when one is profitable in four different scenarios and the other one is only profitable in one scenario

lol I had that mixed up...down a lot, down a little, sideways, or up a little.

How so? Because of skew etc and since the drop in the 80's that puts generally are more expensive that calls. ok so in this scenario you are looking for this relationship of "parity" to skew (smirk/smile) back to normal so selling premium on the calls would be an idea. Dumb question I'm sure...

Ok I am going to read this over the holidays so we can be on the same team :) Merry Xmas! Yes, but I'm trying to find a way to earn some income monthly that does not put much capital at risk during a downturn. I have enough in buy and hold etc. Merry Xmas!

The short call spread will be profitable if the stock price moves up a lot, up a little, nowhere, and down a little. The long put spread will only make money if the stock goes down a lot. Thats a 4:1 probability of profit favouring the short call. It would have to close x amount itm before I...

Ok I have some reading to do apparently over the holidays. KEY TAKEAWAYS A synthetic option is a way to recreate the payoff and risk profile of a particular option using combinations of the underlying instrument and different options. A synthetic call is created by a long position in the...

I'm talking about selling the call spread versus buying the put spread are entirely different probabilities of profits. Hey while on the subject of boxing....why is it illegal to box a stock position? Is it because then you could just sell premium on it with no risk?

Yes you have posed this question before about them not being different but they are entirely different due to the positive theta...perhaps you need to retrain your runners..:)

Looking at the chart I'm selling an ATM call spread if being aggressive versus any long put spread. This is just by eyeballing it. Anyway look at the range for 1 SD and tell me which side of the trade you'd want to be on , or chart the BE on buying a put or put spread to see the likelihood you'd...

Cuz you're still directional you just doubling your risk.. and then you might as well just double up on the short call

Selling a call spread ATM will out perform buying a put spread ATM about 4:1 as far a probability of profit.

The 90/110 bear call spread will outperform the 90/110 bear put spread 4:1

I am referring to selling option because the probability of profits when buying options is horrendous...selling a credit spread is always preferable imo to buying a debit spread. Ok selling a 195 IWM put. If price drops below 195 you will be realizing a loss when you close the position. You can...

If you don't take the shares then you are closing at a loss.