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Don't waste your time, I showed him an example where he lost more yet somehow he declared his point proven. I have a feeling he doesn't really trade options or he would know from first hand experience the stupidity in what he is saying. Maybe he is in a debate class in high school/college and...

I lost a lot less than you did on the 1950 call because it was hedged, so in fact the spread I posted proved that point exactly. YThe reality is you lost $285 and I lost $165 simple as that. Moving further out to pay less for a single option means you have even less of a chance of it being...

We will just agree to disagree. Keep buying those OTM options.:)

Wow, pretty twisted logic there. First you aren't getting .10 for that option and I am not closing it for 0 so let's just say they both go out worthless ok? What you are neglecting is that you invested $285 vs. my $165 so who really came out ahead? Yes I capped my profit because I didn't...

I saw your age and wanted to share my cautionary tale. When I was in my mid-20's I got married to a woman who had a lot better handle on money than me and in a nutshell I suddenly had a six figure account to "manage". If you are currently managing a 30k portfolio I would treat your new account...

Now that I can do! :)

So based on your prices I am already ahead $140 per single unit, awesome.

You are spot on. No one will disagree that the p&l on a one way move isn't better with the naked but it is all about probability of success over a number of trades. If I knew SPX was going to jump up 20 pts tomorrow, of course I would buy a call.

Alright, that's all these drawers can take. Hopefully you will add some insurance/hedges next time so we don't have to resort to these desperate measures. :D

Let's make it Friday expiration, no sense in dragging it out. SPX buy 1950 sell 1955 call for 1.40 SPX buy 1950 call for 2.8

Maybe I am confused with what you are saying. Let's say I buy a vertical with the long atm and the short otm, and you buy either an atm or otm option. Once we size them up so the risk is similar are you saying that the return on the long if the market doesn't make a move will be more...

Well you won't get any arguments from me. I need somebody to buy the options I am selling.

Simplest/riskiest is selling a straddle. Besides that you can trade a butterfly which is the straddle plus long options to reduce risk. I still think it is tough intraday though. Every leg you add to a position causes slippage you have to overcome.

Jeff Augen has some good material on expiration plays in his books. I believe some of his techniques revolve around sideways movement/pinning to strikes/ etc. I found it tough to overcome the bid ask spread in a single day personally.

Your kidding right? 90% of the time, really? How about compare a debit spread to a long position and then model it out to expiration and tell me what the risk and return look like.

If you want to pick a direction why not a vertical? Buy a call and sell a call further out (or puts). There are all types of combinations that you can match up with your outlook on the stock.

Just know that I am sharing your discomfort.

That counts as a down day right?

My post was referring to an earlier post regarding my ongoing efforts to bring the market down for gamblingman. Who cares if she is hot, she gets half. :D

Either it goes down tomorrow or I am a single man.