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Thanks aardvark for explaining my reasoning - it wasn't meant to insult stock traders, but simply to point out the complexity of options vs stock trading and the risk reward relationships. From bali survivor: "does daddy's boy want to be macho " thanks for the insult - that's what people like...

Some discussions here are almost impossible to follow while others are at the other extreme. Of course, there are a whole bunch in between. If you are not familiar with options and their terminology then it can be a bit daunting. Once you've brushed up on the topic it will be easier to follow...

"If I waited until after it opened and established my net credit proceeds from the credit would have been $125 more" But you couldn't have known that in advance. The market could well have gone the other way and you would then have been in profit territory. "Also, there was no way to really...

I get 7/20 for earnings (optionsxpress site). daddy's boy

Ah, even better. Risking $8.60 to make $1.40, iow return of ~16% over 14 days. I noticed the short call has a delta of 0.13 and thus a probability of expiring otm of ~87% - the odds are in your favour. Nice. daddy's boy

It comes in waves. daddy's boy

Not sure if this is of any use in this discussion, which seems to have become rather convoluted. But if I'm looking to buy, for example, a vertical and I want to know which is the best vertical for a given expiration then I just look for the spread that doubles the fastest in value over that...

Quote "Cost $35 - original short put $35 - new put -------------------- $70 - total cost" I think you've added up the strikes to give you a cost???!!! I think your calculations are all screwed up, unfortunately - you've confused strike prices with premiums and vice versa. Anyway, I've...

Let's see if I can work out what you're doing. You have been assigned on a short put and are now long the stock. You want to sell the strangle. End result - long stock, short put, short call. You in essence end up with a short put plus a synthetic short put (long stock with short...

forex-forex wrote: "Also a reward:risk ratio of 1:11 isn't all that good, 1 trade in 11 will put you back to square one." That's assuming he holds all positions to expiry and just sits on his arse doing nothing. I'm assuming he has some skills in money and trade management. daddy's boy

Surely you can't be serious! daddy's boy

"Reward:Risk ratio = 1:11" That's 8.6% for 14 days or, put differently, approx 0.6% per day or approx 223% per annum at forex-forex assumed fill - not bad at all. If fill better than that then obviously return will be better. daddy's boy

Cool.

JSHINV Sorry, didn't mean to offend and wasn't sure how much you know or don't know, that's why I posted my explanation. You also wrote subsequently: "I usually buy an out of the money put to cover it". That means you don't have a covered call, but a collar instead (synthetic bull call...

Happy riding. daddy's boy

JSHINV Ok, covered call is synthetic equivalent of naked put, just in case you weren't aware. So, cc's aren't a good strategy to use if you are trying to avoid "naked" positions. daddy's boy

That's funny :D . Btw what's your question? daddy's boy

That's only 9 traders out of 17. Still a bit early to extract any meaning since the sample is so small. All one can conclude so far, assuming the replies are honest, is that there are 9 speculative traders who make more than 50% annually from their speculative activity. daddy's boy

The question should really be: How much of one's prostitution profits go into one's trading account. Daddy's boy

I must admit, I like marketsurfer and thunderdog. I think they are both swell chaps and wish them well. It would be lovely for us all to meet one day, bury the hatchet, have a group hug and then chew the fat :). We could even talk about who has got the most (or biggest) monitors or turrets...