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Yes you are correct. I should re phrase that i am referring to OTM spreads, in which the debt and credit spreads would have different strike prices. I think it is easier to learn about spreads when you look at them as being OTM. I would recommend that thought process as a beginner.

When referring to OTM spreads with different strike prices. With a debit spread more time is your enemy and more volatility is your friend. With a credit spread more time is your friend and more volatility is your enemy. Purchasing an option outright has similar characteristics as a debit...

They do act alike in terms of directional bias or delta. They act differently in terms of how they are effected by vega or volatility and theta or time decay.

I like credit spreads because you can make money if the stock doesn't move or it goes your way or even sometimes when it moves against you. A debt spread needs the stock to move a certain direction. The downside to a credit spread is capping your gain based on the premium received. In other...

Your welcome. A debt spread is a directional bet. if its a put debit spread it will become profitable when the underlying moves down.

Regarding Dividends in an options portfolio. Check out this link for really good detailed information. http://theperfectpassiveincome.com/index.php/2016/03/19/dealing-with-dividends-in-an-options-portfolio/

TOS has a great format. First I think your using the best format. Selling a naked call is undefined risk. With undefined risk some traders would consider taking the loss. You can make an adjustment and sell a put at the same strike lowering your break even if the stock continues to rise. But...

Rules with intuitive inputs what do you mean by that? Are you intuitively picking a direction?

The Geometric Brownian Motion model of stock pricing (used in Black and Scholes model) is a universally acceptable model. This model supports market randomness. I didn't say there was not an edge to be found it just isn't found by predicting direction.

Technical Analysis determines a bias on the direction of an underlying. In other words picking a stock direction. The hard part is managing your money around that bias. No technical analysis is always right in fact statistically they are most likely correct 50% of the time. Lets say you find one...

Yes! I cant think of how many times the act of back testing itself was the catalyst for a new idea.

I think of traders in different catagories. Directional and non directional. Most traders are directional meaning they pick a direction. Fundamental traders pick a direction based on some type of information. Traders that use charts tend to be directional. Non directional traders use derivatives...

Botpro I have been asking myself that question ever since I began trading options over 24 years ago. I have created a system that does have some risk. 3% losers, 25% break even, 72% winners. Of the winners 58% are full winners 14% are partial winners. My losers approximately average 3 times one...