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Thanks for your help guys, very useful information. @slickpick Yes the goal is to take a long position selling the option back once the price has risen.

Please tell me why I am wrong but I thought that when you are assigned you will be buying the underlying at a worse price than the current ask, if you then sell the underlying you will loose money on the bid-ask difference. So you would need to wait for a favourable price move in your direction...

Could someone explain how the maximum loss could just be the difference between the strikes (x 100). Does this not include the cost you incur if your Puts are assigned? Surely if you are assigned and need to buy the stock you loss will be greater than the difference between the 2 strikes...

Hi Say I purchase an OTM option today and forecast that the underlying will move X% within 7 days there must be a way to calculate what my return will be if the underlying makes its move in 1 day, 2 days 3 days etc by taking in to account how much the premium I paid has depreciated due to...

Hey, thanks for the reply I plan to sell before expiry, I am just trading premium with long calls & puts. I don't plan to hold over upcoming news events, so volatility should be steady whilst I hold the position. <b>Holding positions for this long is new to me. Can I realistically expect...

Hi If I am playing long calls & puts and <b>I plan to hold option contracts for two weeks, would I be better using options that have 2 weeks left to expiry or options which have longer? - which would be affected least by time decay? Of course longer out options will be more expensive but...

I'm not sure I follow what you are advocating, could you try explaining in a little more detail. Otherwise, surely the problem is when the stock moves against the calls that you have written, or do you own the stock or are you entering long calls also? Have you factored this in?