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Thanks Bob, I'm looking forward to following your management of this trade, I don't think it's been done before on ET. Best daddy's boy

This thread was about the reverse collar. If you are now blending options with u in the fractions mentioned earlier then you no longer have a reverse collar or married call position. The thread then becomes a discussion point for gamma scalping calendars, diagonals or whatever position the...

Bob Noone is arguing about one strategy better than another. All some of us are trying to say is why make things complex if you can do it exactly the same way using synthetics. Your reverse collar - 3 steps (short stock, short put, long call) Synthetic - 2 steps (long put, short put)...

Sure. Bullish prognosis so go long 80/85 aapl feb call spread. aapl falls to 75. prognosis now bearish. adjustment: sell the 75/85 call spread, i.e. buy back the short 85 and sell the 75. result is a 75/80 bear call spread or, as you like to put it Bob, 'delta negative'. Easy, took just one...

No disagreement from me, lol. But Bob is trading the reverse collar because he believes that it provides superior gamma scalping and other adjustment opportunities - otherwise he would simply trade the vertical or long put. Please correct me here if I'm wrong :). daddy's boy

Bob, this is the same issue I mentioned in my earlier post (and also referred to by richard rimes and now MTE). The problem here is that ET posters generally agree that a collar or reverse collar is NOT superior to the synthetic - that is why we had the flaming at optionetics, lol. This is also...

Bob Can you show us how this strategy (reverse collar) is superior to the synthetic equivalent bear put spread? Also, how is the 'married call' (aka synthetic put) superior to the synthetic? I hope you won't be suggesting that put/call parity breaks down :). daddy's boy

Net credit should be $75000. daddy's boy

Yes, same can be done with the regular collar, turning it from a bullish to a bearish trade. daddy's boy

It looks like you've got an iron condor, assuming the same month expiries for the 2 credit spreads. Which months have you got and what are your put strikes? I assume they must be pretty far otm if your cr was 0.45, and I assume you have a 5 point spread. How do you decide which strikes to pick...

reverse collar (a bearish position) implies otm options, i.e. your position is short stock plus an otm short put plus an otm long call. This gives you a synthetic bear put spread. If you use itm options then you end up with a bullish trade, i.e. a synthetic bull put spread. A regular collar...

Lol, I know. We're from the same turf :) daddy's boy

2% of bank. daddy's boy

OTM There is a lot of very good stuff here. Unfortunately it's hidden amongst a lot of rubbish and fisticuffs, aka 'boys letting off steam', lol (even I was sucked into a heated exchange with one fellow with the handle wayneL and then some other fellow who apparently doesn't like gays - Lord...

I knew you had a sense of humour! :) daddy's boy

Mav, I've got the book in question and it NEVER advocates a ratio spread for the simple reasons of margin and theoretical unlimited risk. It advocates a bwb, iow a ratio spread hedged with a further otm long option. daddy's boy

Great! Now that we've got the macho stuff off our chests we can enjoy the rest of this delightful New Year :) :) :)! daddy's boy

No, no, no! I didn't say Timbo is gay. I said the poor darling is frightened of gays, lol. daddy's boy

Beauty. Let me add a little to your knowledge then. And I'll use some anger since that is when you seem to learn the most. Here goes: you're a motherf... c... . Bygones daddy's boy

Thanks aah. I've been around a bit and take most of the stuff I read with a bag of salt. But you're right, a lot of it is entertainment value and my new year resolution is to spend more time studying things with substance, i.e. less time on these boards, more time at the books. daddy's boy