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Does it mean calculate the possible risk and range of certain stock,then create a spread or write a naked in longer term option?

A bit special.Can common people trade such exotic options? Are you trader working in financial institution?

Well,I think I should use another term instead of this. I forgot risk/reward refers to expected return. The original purpose of this question is since the tail event is much higher than normal distribution would suggest,the 1:2(instead of prevailing 2:1)risk/reward ratio might not be 1:2...

Financial C MS BSC WFC MER BAC Solar Energy FSLR ESLR SPWR Potash POT AGU CF TRA FMC Technology AAPL HPQ DELL CSCO GOOG NVDA Apparel JWN GPS ANF FOSL GES COH Retail GME BBY SHLD JCP M Auto GM F TM DAI NAVZ HMC NSANY **The purpose of this...

risk:reward e.g. 1:1, 1:1.5, 1:3. Writing in format above can avoid confusion.

Any reply would be welcome.

The stock market might be closed someday,but if there is any more human,there will be trading and speculation,maybe it only changes its form?

Chris,somehow I agree to your opinion.We don't know his real situation,maybe it is just a portion of his overall position. Maybe he was wrong,but for me,losing 40k in options is better than losing 40k in value-investing at the beginning. At least,it gives people quick lesson.

No one replies to you.I think they didn't get what you mean. If you refer to "strategy scanner" which tells you if you are very neutral,then short straddle,naked call,naked put would be the option and gives you the suggested max risk,profit,then optionsxpress provides one. But from my...

Overvalued can be persisting a while and happening without any reason until expiration.

I think writing naked option requires a very strong back-testing skill and a LLC to prevent any shit happens. But is there any broker allows people to open a LLC to trade naked option with just only 10k deposit?

IB minimum requirement is too high for common people.Maybe they should give a chance to beginner to use low-brokerage service? I watched IB minimum required capital rose from 2,000 to 5,000 and eventually until 10,000 now.

While it is not risk free,but since selling option=selling protection=selling insurance to the public. It is sensible to give it a try.The only problem is in the changing market,both volatility and the extreme event frequency of s&p are increasing,so the only risk is being wiped out by a...

Is it wise to create a Jan spread under this condition?