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Tax wise that is how it works. Income is a single word that covers that, divs, wages, etc.

Neww, if you have $50 a day of theta, and the stock sits still, roughly you will get $50 from the higher decay on the short options than long options, so what would you call it?

The question is if this trade become popular could it cause a gamma squeeze? Came here for expertise on that.

Both are income. One removes money from the company and it goes into my account (dividend), the other does not harm the company, it comes from another option trader. Another difference is theta is a capital gain tax wise and div if you are in Puerto Rico is taxed, cap gains are not. Cheers

I have used diagonal spreads for years, think it is the best way to play something. Wrote an article on CEO.CA about it today. You Can Play Silver and Gold and Get a 64% "Dividend", Here is How. Plus, Can Silver be Gamma Squeezed if This Becomes Popular...

The Spread Hacker is a scanner in TOS, it looks good. For others I could not get any results, then realized there was a min and a max, did not see max. The scanner would run and run and never print results, until put in max on various filters, then it worked.

Thanks emulimu, very helpful will try that.

Thanks xanderman. I am always looking for a free lunch, and have found quite a few. The same link I posted works long on stocks if you reverse it and works even better with calls than puts on most stocks. BTW Tesla IV changed such that for playing it for a drop or staying even it does not work...

Fantastic. Any "everything" includes a way to screen for stocks with the best 1 week vs 1 month higher IV? If not just the chart is very helpful. Cheers

Guru thanks for in depth answer. A lock trade is one that PL calc says will make money at any price at expiration. Have found them, but in reality the PL calculators prove to be wrong.

Yes if it will drop more much better. Do you know of better way to hedge market with small money and low neg theta or positive theta?

Exactly, is that TOS? How did you get to that screen? I see an exception in it, the Oct 29th IV is lower than the Oct 22, the rest are as have encountered higher, and on Oct 29th it is only the ATM strikes that are lower the OTM and ITM are also higher. OK whoever has those graphs do they...

Thanks, good advice

The best method I have come up is this How To Short Tesla With 77% Chance To Win, Make 35% If It Sits Still And With Low Risk (NASDAQ:TSLA) | Seeking Alpha BTW after being ahead on TSLA with these because it was going up so much when got even stopped doing it. Am still looking for a better...

Thanks BlueWater. Was aware of US history not prior Europe stuff. Meant publicly traded by normal investors. There were real estate options as long as know. I will give $10,000 if can buy this home for $400k over next 3 years type stuff. I was around when options opened on exchanges for...

Poking around see AMC has hugely higher IV 1 month out than 1 week, like 20 IV more. Have figured out good way to profit from opposite, any suggestion on GME to profit from this?

Easy to answer, look at stock market before 1970s. there were no options. Pretty similar is answer.

Hi, as some background have done great for 2 months till this week doing diagonals buying say three 1-2 month out XOP and selling two 1 week out. Got big theta and made bucks on delta too, maybe best option play have ever had. Then this week the prior IV advantage went away. It was like 41%...

Guru, I have spent more time than want to admit tinkering in PLs with lock or near lock trades. Hard in real world to get them to work though. Months later how is this working for you?

IB is ok on higher priced stocks, but just terrible on lower priced, especially under $1. On options IB is unpredictable, it can be 3 times as much or 1/2 you never know until it has executed. They are also terrible on fixing bugs. They are good on foreign stock, such a ASX, TSX, etc. On...