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0.03 gamma x 10 days = 0.30

So you thought you were buying March ATM Call options for only $0.10, but they ended being Deep OTM? $0.10 should indicate that they are Deep OTM options.

With one day left to expiry the market has put a time value of $0.20 on the position

+1

I would think that if you shorted all options you would come out ahead. They are a decaying asset so how would you not make money?

Then don't be so anal-retentive. :)

LOL You are the only one on ET that thinks this is a real trade, it's obvious that stevebearman started this thread as a joke. He sure sucked you in. :D You probably think the above picture is real. It's not, I added the text from a picture I got off the internet.

Usually Debt Spreads 1 - 2 strikes apart to reduce the cost.

Maybe stevebearman sold the puts to make up for his AAPL trade. Should I panic about my short position on Apple calls?

? :confused:

That is correct ...... Perhaps Nine_Ender could respond to the post in question. :cool:

You are quoting my post out of context. :)

A higher share price also thwarts off Hostile Takeovers.

$470

The OP should be panicking by now.

The OP hasn't posted the premium he collected, maybe he has a small unrealized profit at this time.

Yes ....... Maybe enter the position 4 / 5 weeks before expiry.

My guess is that it will take longer than 1 month for the December option to decay by $0.30 plus Bid/Ask spread and commissions. Could even take a couple months, sort of like watching paint dry.

I don't think deeper expiration is a good solution, most of the time decay is in the last month. For a premium seller more time is not your friend.