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I think all three of these strategies, when used around earnings should be in and out of quickly. So if the stock doesn't move significantly after earnings then take the loss and bail. And yes they probably will all three lose about the same amount. I take no one is interested in the Reverse...

So would you be willing to trade 'A' instead of 'B' if it succeeded more often even though it paid less?

I reckon so.

What? Convexity? If trade 'A' is successful if the price moves $10 and trade 'B' is succesful if the price moves $20. Trade 'A' will be successful more often than trade 'B'. What does "convexity" have to do with that?

But deeper OTM options won't be the same size, the risk of failure would increase. That's an important trade-off. Going deeper OTM would increase the risk to a point approaching the same as the Strangle and/or Straddle so then you wouldn't want to cap the gain with the RIC. The goal is to...

Well I don't know the stock will get naughty "for sure" and even if the stock does move a lot after earnings if the implied volatility drops and the option prices drop that can cause the Straddles and Strangles to lose or breakeven while the RIC can still win but you would have to wait and...

What's a reverse condor? Well it doesn't appear to be very common but that's one thing I’m curious about. Basically turn the Iron Condor upside down and move the wings in as far a possible toward the center. In other words buy two ATM options (+1 PUT and +1 CALL) and sell (-1 CALL) one...

Has anyone ever bought Reverse Iron Condors before earnings? They look like an interesting alternative to Straddles and Strangles because they "could" costs less and have a smaller window of failure, but with less profit as the trade-off. If you use them, do you have any rules or suggestions on...

I also purchased 'Trading Pro System' for about $150. I don't have the actual count but it's over 24 hours worth of videos. Focuses on Iron Condors and Double Calendar spreads but it gets into several other stragies as well. I think it was pretty good and a lot less than most seminars.

You're right. So far all have is a March $34-$39 credit spread.

Down she goes. So far so good. I don't think this kitty is gonna bounce. (Fingers crossed)

I recommend having a mentor. I'm happy with TradersEdgeLive.com, I think they have decent prices for what they offer. I tried learning it on my own but these guys pointed out some things that I didn't see on the same strategies. I was like WOW this is worth the money. I found some good...

Not exactly, you can only exercise the options that you bought and are ITM. Even then you would lose some time premium. You can close the entire position at its current value, change it into something different, or wait.

Unless you do a calendar which the OP said was not allowed.

OK here's my attempt. To be long Theta you need to have an overall short strategy and you want the position to go down in price. Any increase in volatility will make the option's value increase. Therefore, I don't think it's possible to be long both Theta and Vega at the same time.

Me and a trading partner started following this stock this week as well. I was thinking of buying some $28 PUTs because this company looks like it's in trouble. But since the volatility is so high these options are expensive, therefore I sold a March CALL credit spread instead. But I'm still...

Howard, I have been looking at your journal and have some questions and comments. Entry Points: If entering at 60 days gives you more opportunity for rolling winning spreads, does it at the same time introduce the risk of having more losing spreads? Do you start with more PUTs spreads...

Thanks heech, I'm following you now. Gotta go, I have a sick SQL Server to tend to.

If a stock isn't volatile then the options won't have much value and getting $1.00 might not be possible. BNS and RY have options with strikes $5 apart and those near the money for May are about $0.10 for BNS and $0.30 RY. RY June options near the money are about $0.80.

I'm so confused! If the stock stays between $46 and $54 neither option is exercised and he keeps the two premiums, right?