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Spin, $21 per day. That's an excellent spin, ummm, perspective on things. It just does not make sense to go for that extra $21 in an equally risky manner (with unsafe high-yielders.) I'm still working on this strategy . . . AZD

Spin, As always, your "crumbs" of wisdom are appreciated. As for conversions - I've never been able to pull one off. Especially those reverse conversions. I've seen them hanging there like low fruit, but because I couldn't short the stock (not talking about SPY), I couldn't do the...

Very good point Darwin. Risk management. Survival. Survival of the fittest. Hence Darwin. :D Sometimes it might be easier and more prudent to make an extra .25% (That's POINT 25%) on the primary options strategy than to risk a big drawdown in a "safe" income generating instrument. In...

Optioncoach, Thanks for sharing those two. Good to see you are still around and kicking - I remember from another forum (not to be named here :) ) that you had an entire list of income-generating ETFs. You had your own personal "proprietary" strategy, if you will . . . I hope it has been...

Thanks drcha. That's quite a yield. It's too bad they don't have options - it would be nice to protect oneself from the recent wild swings. AZD

This is a topic in itself. My goal is trying to generate reasonable income from the funds that are tied up by maintenance requirements. 3 to 5%+ is much better than < 1%. AZD

Sounds okay. Do you have any names in mind? AZD

I guess we are getting a little off-topic, but what is it you guys are "scared" to comment on? Are you saying that you are doing very well with spreads (the 14%+ mentioned) and don't want Mr. Market to hear ya? :D AZD

Maybe I should say "extraordinary" relative to spread trading. Earning 14% per month on a consistent basis spread trading would require opening spreads on high IV stocks/indices, and/or close to the money or in-the-money - - - with consistent profits. You would have to be great at predicting...

Making friends is a good thing. :D I'm sure that we would be more acquaintances than friends as I would be using limit orders, making sure the options did not sell below parity. AZD

One more "option" I neglected to mention was buying a high-yield ETF and selling DEEP in-the-money calls. The biggest risk on the upside is early assignment. AZD

Greetings Div_Arb, I was being somewhat facetious when I mentioned JNK. :) Making 13.7% is not very impressive when the underlying falls from 47 to 31. Ouch. No matter how skilled one is, making 13.7% a month on spreads (especially in this environment) would be quite impressive. It would...

I'm not sure this dilemma has been addressed recently, so I'll open up a forum for discussion. :p For many types of trades (credit spreads, condors, straddles, strangles, etc.) we have little or no cash "yanked" from our accounts. Most of our funds are tied up for maintenance requirements...

There are times when it is necessary to buy at the bid and sell at the ask. I was referencing my attempt to close a position and not to open one. AZD

Osho, I just stumbled upon this thread . . . I have experience trading the SPX weekly options. As some have stated, the bid/ask spread is usually wide and the volume is usually low. Not a good combination. :D A few times, I have traded them and not only could I NOT buy or sell at the...

Spin, And you are the mitotic inhibitor. :) It's going okay. Good to see that the market is treating you well. AZD

Winston, Yes, that makes sense. But if you short an "overpriced" ETF or buy and "underpriced" ETF, how do you lock in a gain? In other words, what is the specific course of action? AZD

Winston, Thanks for taking the time to respond. Would you perhaps be able to give a specific example of how a retail guy might open and close an arb opportunity using the SDS as an example? Thanks. AZD

I typically enter into options positions such as spreads, condors, butterflies and strangles or combinations of the above. If the underlying is an equity, I sometimes scalp. The holding period varies depending on the position and the underlying. The idea of arbitrage on ETFs is interesting. I...