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Thanks for the reply. I can follow your synthetic argument, it's simply the reverse of cohenmichaela (his is a conversion, yours a reversal). However, shouldn't that profit read 0.08/10.38? And where/how do you get 10.23+0.15 from? Surely the return is calculated using the profit divided by the...

Hi there I need some clarification please. I thought the real cost of the synthetic 10 strike call is 1.10 (cost of long put) plus 0.24 (10.24 stock price minus put strike of 10), i.e. 1.34. You then sell the real 10 call for cr of 1.20. This gives you a loss of 0.14. Iow the conversion...

Hi Bob What do you do if the iv drop is accompanied by a stock price drop of large proportion? db

I placed a march rut IC a little while ago (49 days prior to expiry) and ended up closing it for a small profit (after commissions) today. I believe I played it as per Dan's webcast instructions to the best of my ability. So I can't complain except that the profit wasn't bigger. But then I...

Makes sense. Thanks MTE. db

I'm afraid that's what I thought. The question is in regards to 'consistently'. 'Consistently' for some is a few months, others a year, still others forever. There appear to be plenty who are consistently profitable until they're not. I was consistently profitable last year, now I'm not. So...

Surely this can work both ways, i.e. against you or for you. db

How does one know, or can prove, when one has an edge? db

I try :) db

Umm, I know where to find data. My question is more of a philosophical nature, but thanks for your reply anyway. Peace db

So why are the retail guys here? Charity, delusion ...?

Dear comrades Where is the edge? Can it be proven to exist? How does it differ from consistent luck? daddy's boy

Which webcasts do you mean? I've watched them all and he still seems to be talking about the 1 SD otm short strikes and going 49 days out to give himself some 'wriggle' room. 70 days seems a bit far since time decay is then less than optimal. daddy's boy

Say the option has a delta of 25, iow a 25% probability of expiring itm. The problem is 'how much itm' will it be at expiry plus there's still a 75% probability of expiring otm, the problem is also again how much otm. In summary if you've shorted options then expiring otm, no matter by how...

That may be so, but I understand that optioncoach used to have a credit spread trading journal that has a very similar approach, i.e. selling the <7 delta vertical. The difference between his and Dan's is that Dan uses an IC instead. Seems like a reasonable income strategy for those who can't...

Hi there rallymode, What do you mean D S would be proud??? I studied his webinars on cboe and found them pretty informative.Do you think his mentoring course is worth doing? Does anyone know how much it costs? daddy's boy

So, how much does the free e-book cost? daddy's boy

IV is derived from the options price. the greeks are derived from the IV. I don't see how one can derive the greeks without knowing IV first. Please feel free (anyone) to jump in and correct me if I'm misunderstanding something here. daddy's boy

I think you're a little confused here. I'm talking about SELLING the deep OTM BULL put credit vertical vs. BUYING the deep ITM BULL call debit vertical. The 2 trades are identical and management would be identical, i.e. when you close your debit vertical early you'd also close the credit...