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Yes, one third the cost. But the value of your options will erode more than one third as quickly. Thus, as you have already been told, you need a more rapid price increase for these options to become profitable. All delta are not created equal. It truly depends on why you are buying...

My thoughts 1) Not every position has to be 'repaired.' Sometimes it's best to take the loss and walk away. 2) If you elect to try to fix this position - BE ABSOLUTELY CERTAIN that you like the 'repaired' posiiton and want to own it. Do not make a repair just to try to salvage the...

'Trading more' - and that means more size is exactly what I was referring to when I mentioned that success can lead to 'carelessly managing risk.' We each have our own opinions, but it is my experience that the traders who get into trouble most often are those who had some success, and then...

I don't know this site or what they offer. But if the name comes from the Max Pain theory, then it's garbage. Max pain is a myth. Mark

If you anticipate a market that's near the bottom - and I assume that's why you would be buying calls; And if you understand that when the market reverses direction, the then current sky-high IV would come crashing down; Then buying long-term options is the wrong way to go. You would lose...

Stop orders don't work with options as they do with stock. Why? Is the stop activated when the option trades at or above the stop-limit price? Or is the stop activated when the bid reaches that level? Or is it activated when the offer reaches that level? Or perhaps the bid/ask...

You are way off the mark here, Mark. 'Even 10 delta calls and puts'..... Those 10 delta options are the calls and puts I'm selling when I initiate the iron condor position in an index. They are hardly FOTM options that one might want to buy for protection. Mark

You still cannot read and understand English, regardless of how many other languages you speak. If a method had an 80% chance of being profitable - that obviously includes the need to make adjustments and/or any other possibility you care to name - then it will be profitable 80% of the time...

He cannot do so. They are correct. This guy is just a troublemaker who throws accusations and never supplies answers. I suppose that he doesn't understand that the probability of tossing three consecrate heads, with a fair coin, is one in 8. Mark

Her's what happened to me - just to give you an idea. When I first began using iron condors, I had FOURTEEN consecutive profitable months. I know that will never happen again. Losses are just too common when using this strategy. So if you get overconfident, you may manage risk...

If the position has an 80% chance of returning 5% in one time period, then it has only a 64% chance of doing that twice in a row. To see it for three straight months, the chances are only 51% Etc. To do it for 12 months, the chances are one in 14. Not horrible odds, but not a likely result...

1) Being assigned is a reasonable result. Don't fear it. 2) If you prefer to continue to own the collar, you can roll. three steps, in this sequence: a) Enter a spread order to buy back the call you sold and sell another that expires next month (or further out). Use a limit order, never...

Hi Falcon, 1) If you trade 10 iron condors with a margin requirement of $10,000 (it's less due to premium collected) and earn $2,000, it may be tempting to say that you made '20% on your investment.' 2) I don't think that's reasonable. Your goal as an investor is to earn a reasonable (to...

With all due respect, you really ought to take the time to gain a better understanding of what it means when positions are equivalent. That understanding will translate to cash in your pocket. Mark

You are working too hard on this. 1) If you sell the call, the premium is yours to keep. It does not matter whether you are assigned an exercise notice or the option expires worthless. 2) The call option limits your gain. The maximum selling price for you is the strike price. 3) This...

How may citadels are there?

When selling premium, as in trading iron condors, the results depend on what happens during the month. If the market is calm and the options quietly expire worthless, you can earn all the premium sold. At other times, you may make some adjustments and retain only a portion of the original...

Remotely realistic - NO. But is it possible? Yes, there's a very small chance.

To improve the collar, trade the equivalent position instead. a) Sell the put with the same strike and expiration as the call you planned to sell. b) Buy the same put you would have bought. This is the short put spread and it has the same risk/reward profile as the collar. As far...

You honesty believe that MMs have the ability, advance knowledge of pending orders, and the capital necessary to compete with Goldman Sachs? You do not live in the real world. Mark