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There is not much to provide guidance on as you haven't provided anything substantial to even comment on. A credit spread is a directional bet (to a varying degree, depending on it being ITM, ATM, OTM), obviously you are getting the direction wrong.

Rolling over a losing position so "as to not take a loss" is an illusion. "Rolling over" is nothing more than closing an existing position at a loss and opening a new one.

Look up contract specs on the respective exchange - e.g. http://www.cboe.com/products/equityoptionspecs.aspx and http://www.cboe.com/products/ If we are talking about US equity options then they are American-style.

American options (note that this has nothing to do with geography) can be exercised at any time throughout the option's life. European options can only be exercised at expiration. Generally (in the US market), equity options are American-style, while index options, with some exceptions, are...

Just because an option can be exercised at ay time doesn't mean that it would be. There are specific economic reasons for exercising an option early so as long as you keep an eye on those factors (e.g. ex-div date when you are holding a short ITM call) you've got nothing to worry about.

Standard deviation is usually expressed as a % and Sharpe ratio as a number.

You can trade it with any broker that offers access to US options market.

You statement is inaccurate. The risk/reward ratio of an iron condor depends on how far OTM the options are. So the closer the options are to ATM the higher the reward and the lower the risk.

I don't think there is, but you could use PBP. It tracks the BXM index, which is essentially the same thing.

There is no way to recover a position. No such thing as a magic strategy that would make a loss go away. Any "adjustments" that you make are nothing more than a new trade and to "recover" the original loss the market has to cooperate with your new position.

This is probably the most often misquoted/misused statistic in options. 90% or whatever the exact % may be of options that are held to expiry go out worthless, however that doesn't automatically imply that selling options is advantageous to buying them. What nobody seems to mention when...

Yeah I know, but some use 260 (e.g. bloomberg has 260 as default). With respect to this thread it's a minor point really. Because if you want to compare different sources you have to know what they use to annualize.

There are about 260 trading days in a year. Generally speaking trading days are used and not calendar. The reason you have to take the square root is because volatility increases with the square root of time. In other words, in order to scale volatility to different time frames you need to...

Yep, that looks right: 0.7204%*sqrt(260)=11.62%

When you say the option price went down, which price exactly are you talking about? Last, bid, ask,...?

Why not just buy 149 put and sell 135 put (i.e. put spread)? It's exactly the same position with less commissions and slippage.

No, you are not missing anything, you are actually spot on! Mind you that this risk/reward ratio applies to OTM credit spreads.

No, unless there is some dramatic move afterhours, it is virtually impossible for a DITM put not to be exercised at expiration.

No, they don't give you back the profit. If you want to lock in the profit you either close out prior to expiration or go through the exercise and then close out the stock position. If you choose not to exercise then that's it, you don't get anything.

Well, I don't know who those "industry people" are, but I doubt that anyone would commit serious money to a relatively long-term strategy like this based on a 2-year track record. With respect to scalability, I have quite a bit of experience in trying to move size in small/micro cap stocks...