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The first thing to learn is that posting on a message board is the LAST way to get advice, as all the idiot replies prove. The advice from sle is the only one to make any sense... or have any authority behind it. It takes at least a year of paper trading to get in a position where you are...

Actually the link (which is to the definition of a long box) was a suggestion that perhaps you meant to BUY the box rather than sell it. Your posted position contains the risk outlined because you are selling calls at a lower strike than you are buying them. You have a similar (but opposite)...

http://www.theoptionsguide.com/box-spread.aspx

Bull Call Spread: http://www.optionseducation.org/strategies_advanced_concepts/strategies/bull_call_spread.html

A call is NOT equal to owning the stock. It must be paid for and then it expires and must be bought again... and it does not pay dividends. It would seem that if you want to keep upside opportunities open and prevent downside losses a simple STOP LOSS order will serve the purpose, and is...

"A little learning is a dang'rous thing; Drink deep, or taste not the Pierian spring: http://en.wikipedia.org/wiki/Pierian_Spring

You are pretty close to right... with a few corrections. 1. Every failure is not a complete failure. You have a probability of falling between the strikes which will only be a ''partial failure'. It's easiest to calculate your way but not right. Also you have the option of dropping out of the...

Here's an opportunity to see George as he was without shelling out a couple grand: http://www.youtube.com/watch?v=V5JFaUPtit0 What did he die of? Well if you look at him you can guess. Diabetes complicated by severe obesity. Too much tube time and Twinkies. Swell...

Let me give an example of selling a put to buy high quality stocks which is what the OP was asking. Look at TSLA: http://finance.yahoo.com/q/bc?s=TSLA&t=1y&l=off&z=l&q=l&c= Lets say I want to buy TSLA but only if it comes back to $100. I think it is overbought at its current price, but...

What am I missing? http://www.youtube.com/watch?v=nauLgZISozs

"dry bulk shipper DryShips reported a $0.05 per-share loss earlier this month. That sounds bad, but it was actually $0.02 better than what analysts had been expecting. This news, plus anticipation of "potentially significant price appreciation" at the company's Ocean Rig UDW (ORIG)...

CAT trade filled at .75 which raises the expectation.

CAT: http://finance.yahoo.com/news/caterpillar-2q-profit-falls-43-122721848.html http://finance.yahoo.com/news/bear-day-caterpillar-cat-045516247.html http://finance.yahoo.com/q/bc?s=CAT+Basic+Chart Trade: with CAT at 82.06 Jan '14 92.5/97.5 bear call spread for a net credit of $62...

CFX: http://finance.yahoo.com/news/colfaxs-2q-earnings-beats-est-130619027.html http://seekingalpha.com/article/1513482-colfax-has-significant-downside-overvalued-debt-laden-and-huge-insider-sales?source=yahoo http://finance.yahoo.com/q/ks?s=CFX+Key+Statistics...

CROX: http://finance.yahoo.com/news/crocs-plunge-disappointing-earnings-172321122.html http://blogs.marketwatch.com/behindthestorefront/2013/07/25/crocs-plunges-as-analysts-gripe-about-earnings-inconsistency/ http://finance.yahoo.com/q/ks?s=CROX+Key+Statistics...

CBOE Calculator: http://www.cboe.com/framed/IVolframed.aspx?content=http%3a%2f%2fcboe.ivolatility.com%2fcalc%2findex.j%3fcontract%3d37660D17-7AB1-4D1D-B5D3-7A246EA4764A&sectionName=SEC_TRADING_TOOLS&title=CBOE%20-%20IVolatility%20Services

"I understand his logic but it seems like an awful waste of opportunity cost." Invoking 'opportunity cost' makes the assumption that there are better choices. i.e. positions available that have a better expectation. Really?? What are they? Treasuries are earning around 2.8% The...

Re Question: "Did you seriously sell a leap credit spread for .21?" Just for the record: I am looking to use option spreads as a substitute for holding stocks and bonds for income. DD, a classic blue chip, has an annualized dividend yield of 3.1% The trade I outlined got .21...

Did you seriously sell a leap credit spread for .21? Yup. :-)

Credit Spread management... an example: This morning I exercised one of my rules about managing a credit spread: On 6/13/2012 I sold a Jan '14 62.50/65 bear call spread on DD for a net credit of $21 per contract. I made this trade when DD projected that things were not going to be very...