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i'm probably the last guy here who would tell anyone that writing options is an absolute no-no, but writing stuff for 20 CENTS on a $65 stock? that's not very prudent. only time i would sell (not short) them for 20 cents is if i already owned a lot of them and they were worth a dime.

it doesn't matter to me what you like to believe in. i'm not selling you anything, and i have zero financial incentive to take the time to describe in detail and show you how and where winning systems are being traded. but you are free to believe in what you believe in. me no care. :cool:

that's as accurate as someone saying there is no water in the ocean.

hey, you didn't have to slap her in the face, but if she was a figure skater, i'm sure there were other places that you wouldn't had mind slapping. it would had been a loss if you didn't exercise those options.

edge this. edge that. sometimes that word just makes me wanna slap someone when he keeps on using it with wreckless abandon. :)

you're right. that word often gives me an empty feeling, and i didn't really want to use it. the only edge i have is shaving cream.

not if you have a trading system that takes advantage of option writing. the word 'edge' has been thrown around a few times in this thread. i don't really like the word because it's misused so often. but when a trading system creates this so called edge by taking advantage of options...

not to get to too technical with you, but buying a 20 delta option is sometimes safer than selling a 20 delta option if something explodes several sd's to the opposite side. buying a 20 delta option has limited risk, whereas selling a 20 delta option does not. come on now. that's stuff...

sorry mav, i have no concrete evidence for you or anybody other than what happened in the growth of my account. i've been trading options for like a decade, and i was only sharing experiences of what i viewed was easier to do to make money consistently. i've made and lost money in backspreads...

anyway, i'm not going to force any ideas down your throat because i don't really care. you seem to be intimidated by frontspreads and you're only comfortable with backspreads, and that's fine. but i think it's pretty unfair that you're creating this impression that people can't make money from...

that's something you should look more into because there are definitely a lot of options that are not priced efficiently. the margin of error for goog is not as wide as you think because a 23.5 point move for goog can easily be done in a day and a half. you think you're going to eat a lot of...

just because you haven't been sucessful in writing options and don't know how to trade it and make money, it doesn't mean it's hard for everyone else.

this is the thing. most people are so obsessed with selling juicy premium that they are only attracted to things like goog or some high flying biotech baby. those are the bullies that are actually gonna kill you. those things have a giant gap just about every other week, if not every other day...

if i knew of no other profitable strategies, i'd be trading only frontspreads on some instruments and would confidently say i'd be making money just about every year if vix remains below 35. to tell you how is beyond the scope of this thread. i think picking the right thing to short premium is...

it's better than hay, i'll tell you that. :)

writing options is a process that requires a lot of patience and discipline. you're basically building a wall one brick at a time. you're certainly not going to build it overnight. some weeks go by, and things could go very smoothly. there are some 3-day weekends that you don't even have to...

it's not hard to achieve at all if you're only putting on conservative condors and doing nothing else.

when you get early exercised on the call, you are obligated to sell/short stock at the strike price. since you don't want to hold that short stock, you can just buy it back in the market. this is why you don't want unfavorable gap moves that could make it expensive. but no, you can't do #2...

it's pretty simple. then just short that call again. there's no rule that says you can't short the same option after it's been early exercised the previous day. your real concern is really the gap move, but not the ability to replace that option leg (unless it's some deep itm call for...

not really. if there is no sudden gap the next day, it's actually juicy to get early exercise. all that premium becomes realized. hedge with the underlying until you can start a new leg. what could hurt you is if you are forced to short some stock that is expected to pay a dividend.