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I BTC'ed the short put for $3.96, which I STO'ed for $2.72, so I took a $1.24 loss. I then STO'ed a 4x 115 call for $2.27. As long as CVX trades below $118.09 by expiration, I'll profit.

Made my first trade today! I entered a 4x Oct CVX 120/115 bull put spread for $206/contract. My reward/risk is 70.6%, and my break-even is $117.94. Currently, it's trading at $117.87. Tell me, when entering spreads, since IV always reverts to the mean, should I sell the put with the...

Should I look at the vol smile, and write the puts that have the highest IV, and short the shares to hedge?

Where on earth do you live where ciggies cost $14.50/pack?! And yeah, Squillie informed me that trade was stupid. The new one has a much lower risk/reward.

I wonder...is there any spread screener that can look for bull put spreads where the net credit exceeds the difference in strikes? Then it'll make a riskless profit. I am a newbie at options trading. I've been a buy and hold for income gal for years.

So, what would you recommend? The 120 put is trading at $2.42, and the 115 put is asking $0.66. So the max profit for a 120/115 bull put spread is $176/ contract, while the max risk is $500/contract. That gives a yield of 54.3%, and the breakeven point is $118.24. Would this trade have...

Does drownpruf seem to believe that he/she can do riskless trades? Every trade has risk, and almost every risk can be managed or hedged. Proper underlying selection, position sizing, and active trade management will reduce risk.

Why do you act like this? Bull put spreads are pretty safe...risk is limited to the difference between strikes, and profit is limited to the net credit. The October 13 CVX 110 put is trading at $0.28, and the 115 put is trading at $0.57. My max profit is $29/contract, and my max loss is...

You still haven't explained why this is a bad idea.

http://www.investmentu.com/2011/April/deep-in-the-money-covered-calls-strategy.html

Yes. From what I've been reading, DITM covered calls can return around 3%/month while protecting downside. So I could earn a yearly return of 42.6%, not counting dividends and the put premiums collected.

If it wasn't a good strategy, why is it recommended for conservative trading styles? Say what you want to mean.

Writing puts is a good way to make consistent income. Just make sure the underlying is a solid company with good prospects. If you're assigned, you get discounted shares in a quality company, which you can then write monthly DITM covered calls against for income generation and downside...

Why would anyone do a buy-write on a non-dividend-paying stock when you can write puts? Isn't that an equivalent strategy?

How is a bull put spread death-equivalent? Limited risk, limited profit. What about gamma scalping a long straddle around earnings?

Why not? It sounds sound.

That's why I'be been selling it off bit by bit over the months. Now, I have a strong aversion to keeping large amounts of uninvested cash, so I've been moving it to 50-50 mix of HVPW and AMLP. I like yields.

I do. I have $20,000 worth of HYG shares sitting in it. After my rent, medication, ad, grooming, cell phone, and internet bills were paid, I put half of the excess into my OptionsXpress account (the other half goes to my checking for fun stuff). I looked for an ETF with low beta, and high...

Once again, I plan to keep my current job (yes it is a job), and use that $20K to do conservative option writing strategies and earnings volatility plays. If and only if I am consistently profitable, will I quit working. Then I'll try to leverage my trading experience into working at a prop...

Seriously. I think writing puts to acquire stock and writing calls against the shares acquired by the previous strategy is pretty conservative.