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you know another thing to look at is.. netflix i have seen move big time... you can put a ratio backspread and get a credit for betting on a big move down... i can get a .20 cent credit right now for selling a 65 and buying 2 60's seems like a deal to me.. max risk 500 bucks.. collecting 20...

how come i remember Netflix getting killed.. to much downside risk for me on this trade.. pretty girl turns ugly quick! who knows though that seems really good if your not worried about large downside risk.. is there a name for that spread.. Crashing butterfly? haha

hey... so i've been looking at a few butterflys.. i was thinking all related to cost to reward and a little positive bias butterfly lined up with the highest open interest strike.. i think they will beat earnings. as a percentage they usually do with a 2 to 5 percent move in the stock.. i'm...

Im not offended... :-) glad your not selling anything.... covered overwrites anyone? anyone actively managing short vol dynamically hedged negative gamma trades?

i didn't know anyone was selling anything.. i kinda figured the guy was trying to disprove the alchemy of such high returns on covered call writing.. Anyone selling any ideas aren't making enough money on them! haha thats what i say!

no one has any experience with buy overwrites and delta hedging with buy stops? Say selling premium way out of the money more then 3 months out and and projecting future delta with gamma and vol projection, then putting in buy stops for upside risk?

HOPE is not an intelligent strategy. That makes a good mission statement!

I totally agree... right when the word idiot was used I knew it wasn't a smart response

exactly what i was saying... But i was adding that your basically expressing the idea that the volatility baked into the calls is expensive enough to take the risk selling it.. Everything is relative.. if a volatile stocks premium is super overprice. i might think of a limited risk way...

ahhh as i suspected..

more delta.. higher cost and more directional bias?

Good write up.. your right there is definitely nothing conservative about cover call writing.. limit risk, unlimit profit is the name of the game, not limiting profit and limiting risk... its all because people love the idea of getting some virtual paycheck by collecting small amounts of...

a positive biased butterfly seems in order here..

is there a good way to play the back month against the front... I noticed on the goog earnings that the back month got crushed so hard that it was only worth a few cents after earnings came out... such that.. you could have easily funded a upside blow out in the front weekly with selling the...

you must have a good video card no? that looks like a garage? how do you keep your system from getting hot?

your not kidding.. i still don't understand you .. haha use this http://translate.google.com/ and clarify..

whats the true advantage of a calender butterfly? are you basically just exploiting the fact that you can make the wings wider or/and wider with less money and/or a different theta profile? This would exploit the Theta loss of the ATM calls the most right?

i private messaged ya..

Bucketed the trades maybe?

what do you mean by that? i bought a buttefly at 45 and it traded at over 250 friday morning? how exactly can you say that?