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Has anyone on this board had any exposure, or knowledge, of Charles Cottle's educational material that is sold on his site? If so, please provide some feedback as to its usefulness or otherwise. I notice he offers different levels of material ranging in price from $1000 to in excess of $4000...

Pin risk occurs when the underlying expires right at your strike. Iow, you won't know til the next day (broker notifies you) whether you've been assigned since your short option is not itm or otm but it is right atm at expiry. This is different from the scenario where you have a short option...

yawn ... Time to terminate fellas. db

This is exactly what I meant by popular misunderstanding. For you to predict rain, you have to have had a prior experience of rain. db

Hey, I think I've worked out what Mr Hershey meant. He is talking about taking over and then going for food with potato to level ten therefore no holds going in the lift before the monsoon with sunsets decides to return to the womb with wet blankets in evergreen toe lines sinking very fast...

Does anyone here know what the above means? I have to admit I'm totally clueless despite my extensive schooling. Why would anyone post in such an obtuse manner? The purpose of these boards is to communicate (or so I thought,lol). db

All prediction is based on the past. No past, no prediction. A newborn can't predict. db

They have an edge but it's a different edge from the successful retail trader. Also, since the MM already has an edge he/she doesn't need to predict direction/volatility. db

If it does I'll know exactly what my loss will be - 2% of my trading account :) . db

I wouldn't call a 500 point down tick a black swan event. As a matter of fact I had on an IC on rut and still managed to make a small profit on that day. Best db

I totally agree except that a black swan event will result in the max loss of an IC position. Thus the importance of sound money management. db

That's the point I was making in my earlier post. db

Yes, you can get more further otm credit spreads but your risk will still increase. All you are really doing is opening a new trade to try to make up for losses in an old trade. Listen to Maverick - you lock in a loss and then increase your risk. Why? Because your original credit spread has...

It all comes back again to position sizing and money management. Who in their right mind would risk $240000 in a $250000 account? Otoh if the account has $10 million then risking $240 k is reasonable (2.4% of total account value)). db

But optioncoach is doing it! And I'm doing it too :) . Just know your risk and plan your exits/adjustments. It's no better or worse than any other option strategy. There is no proof (that I have come across) that one strategy is superior to any other - it depends entirely on the competence of...

I fully agree with Richard, too many strategies at the same time will very likely result in confusion, loss of capital and subsequent depression. Therefore it would be wise to become proficient in options prior to taking the mentoring course. That way one will extract maximum value from the...

Probably easier to work out what to do if you analyse your very risky position. You're short 20 synthetic mar 75 puts AND short 20 mar 70 calls. Iow you've got a short strangle and want the stock to expire between 70 and 75, assuming you put the trade on for a significant credit (but I think...

Impossible to have risk go from '5% to zero' using covered calls, unless it's insider trading or there is something new in options theory that has never been discovered before, lol. db

I'll be keen to hear what Dan says. Cheers db