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I'm not sure whether you're saying what the definition of premium is or what it should be, but as far as I know the definition of premium, as it relates to options, is the cost/price of the option. I understand what you're saying with regards to the generic definition of premium - as...

If you're rolling to the same strike price with both methods, it should be almost the same since both methods are equivalent. For example, if the stock goes up one strike, you would roll either by buying a vertical put spread (in method 1) or by selling a vertical call spread (in method 2)...

Maybe you're right - I would have to think about it more. If the introduction of the new product does not change the IVs/price of the existing individual options of the underlying, then I don't know how it could already be priced in. If there's a discrepancy between the new product's price and...

Wouldn't this make it an easy earnings play? Sell the volatility right before earnings announcement.

Being delta neutral tells nothing about the risk in your position. Gamma (especially for credit spreads) and Vega are important, too. You seem to want to "sell premium" your way out of trouble, but it would simply add more risk despite flattening out the delta. When your credit spreads are...

I agree with what spindr0 had said. There are lots of factors such as time to expiration, how close the underlying is to the short strike, and volatility. Common ways to deal with an underlying threatening the short strike are adding long options (add gamma), adding long vertical spreads...

I'm not saying whether the strategy is right or wrong, but you are increasing your maximum risk every time you adjust that way. If you have an iron condor and the underlying goes up, you become more delta negative and so you sell more vertical put spreads. I would rather use the oppotunity to...

I think spindr0 is referring to the United States Chess Federation - the good old days! not for people like me who are directionally challenged.

yes, that's what I said on pullbacks, which is placing the covered call position at that time(or the equivalent - selling puts). I like selling calls on rallies as well, in the form of credit spreads.

I was talking about having no position on initially. So point 1 would be a good place to put on the entire trade since a covered call is neutral-bullish. If the stock is already owned, it depends on a variety of things. Are you a long-term investor or are you actively trading the stock, and...

When I used to do these trades, I would buy on significant pullbacks. Not only do you get in at a better price, but the IV was usually higher which is good for selling options. Of course, you would still have to be neutral or bullish on the stock, based on technical support or fundamentals.