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TAKE THIS ADVICE SIMON !!!

Rather than argue, let me pose an academic question related to this subject. In deciding between a covered Call write and the synthetic uncovered put write, do you think that one should consider the carry cost involved as well as the amount of extrinsic value?

Do you know what put/call parity is?

HUH? I don't know where to begin, to try to make sense of that.

Try 1 900 CALL GIRL :) Seriously, if a service could provide really good advice, would they sell it or trade it? IMO, these sites prey on greed. Contrary to what most think, there's no easy money with options.

Don: "If the stock falls before you roll you will get less credit for your roll. Vice versa if the stock rises before you roll." MajorUrsa: "Buying march and selling april is in fact a short calendar." Taking this one step further... Monitor the calendar's spread. If it's widening...

Newb answer: Your GOOG box shows a profit of approximately $255 Since you are selling the 590 puts for below parity, you will most likely be assigned early, if not immediately. The carry cost @ 5.25% until April on $453 stock is about $255 Guess what? There are no free lunches (g)

Thanks. That's what I was looking for.

nazzdack, Thanks for the suggestion but I don't think that a backspread would accomplish what I'm after. It would not protect the component NP's much during the downslide to its long strike. Only a crash through that strike with a serious increase in IV would mean something but it would...

For many strategies (naked puts, spreads), when implied volatility is low, dollar wise, the risk is greater than the reward since premiums are lower. I'd like to investigate the concept of using the QQQQ which has a lower IV for hedging my naked put writing on some of its components. I...

Let's see if I have this right. First, you're going to buy ITM verticals because their hedge compensates for your not being very good at stock timing and direction. Then, you're going to violate the Constructive Sale rule and cover the short call to take a loss in order to reduce your taxes...

Hello. I'm a friend of a friend of a friend and I've been told that there's an E-mini book available here describing the reinvention of the wheel. Can I get by with just one or do I need two for my tricycle? Ba-da-bump, ba-da-bump... Maybe I need three? :D

Ursa, Don't mean to jump on the band wagon but last night, I went back and read the entire chain and ended up wondering about the disconnect. Someone says A and then B gets replied to (eg. "There's a a higher margin requirement" elicits a response of "I'm not charged margin interest...

It's not the most scientific answer but if you have a modeling program, go long the put calendar and short the call calendar (or vice versa). If one position has an advantage, it will show a positive gain to one side. If no advantage, the P&L curve will be close to flat. W/O a pricing...

QQQQ - I don't know whether it's your writing style, lack of details or just a CYA mentality, but you are the cause of what you perceive as undue criticism. Here is your prior post: You cite "collars or reverse collars with the same strike prices of the puts and calls at the same amount"...

Nikko, you said, "Conversions and reversals have no potential to make money based on changing extrinsic values." I must be doing something wrong because I am making money doing this. Perhaps when I learn what I am doing wrong I can stop making money. --------------------------- LOLOL...

"You need a spreadsheet to calculate that? That is by far the simplest arithmetic of all option trading. You should be able t do these in your sleep." LOL. I was thinking the same thing! BTW, how does one cut and paste the original comment to get it to bracket off in the reply as...

Speaking of intrinsic or extrinsic values, did you all know that if you have a collar or reverse collar with the strike prices of the puts and calls at the same amount, that the amount of the aggregate intrinsic value never changes? Example: Short 1,000 shares of UNDerlying. Long 10 calls and...

In that posting I was beyond the covered put write which I started this thread with. What I had in mind was a situation when one starts by shorting 800 shares of a stock. At that beginning point, the result is that those short 800 shares represent 800 negative deltas. Let's say that at this...