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A spread, without anything to qualify it further, refers to a vertical (that's, um, two legs.) But you can keep piling on these red herrings to scare yourself into fits; no one will stop you. For everyone else, though, spreads are much simpler in a number of ways. Since they're risk-defined...

Thanks - I'm actually enjoying learning just how bad of an idea this is. The basics were pretty obvious, but it just gets worse and worse every time you look. I've done a bit of hedging before - played around with gamma scalping - and learned quite quickly that it's not quite as simple as the...

I'd appreciate it if you could expand on that a little. I thought that only exotics were path dependent.

Who? I was looking at this one (remove spaces to get the URL): https://www. amazon. com/Superior-Persons-Book-Words/dp/0440204070

Still broken, but I've looked his book up on Amazon. Oooh, it is fun! :)

Broken icon there, but I assume you mean the one by Peter Bowler. Nope - I got there a bit more indirectly.

I thought you knew me better than that, ON. I talk how I talk... although I do pay some attention to the audience, I like precision in communication. No, I'm not showing off - gawd, what a baroque idea that is - but simply using the right word in the right place. Otherwise, I could have just...

Sir, this is NOT a Wendy's.

OK. You don't understand that hedging the underlying essentially removes it from the equation and you're net a short, naked call as a result; that's fine. Good luck in your trading.

How will you do that without a magical price predictor? Remember, what you're selling is protection against downside moves, especially sharp ones - which means that's what you're exposed to. The real scenario is you waking up to a $10 drop, not one to your strike (that's not downside - that's...

No way to do it without taking on additional risk. In this case - as everyone has been pointing out - the risk of going naked on an adverse move (the underlying is locked against your hedge but still had a fixed cost at assignment time that you will need to give up at a much lower cost if it's...

Right, so here's the problem: you don't get to have that. If there was an underlying that never moved or only moved up, nobody would pay you for risk on it. You're getting paid for selling insurance against the downside - which means there is a downside. Which YOU get hurt by when it happens...

I have. As in any convo, some people - not all - are going to contribute the majority of the value. But you're not even listening to those. Giving you the benefit of the doubt - what little of that is left - you're really, truly failing if you don't think about what people like @destriero and...

Now you get zero benefit from any rise in the underlying that you're holding, have locked in an automatic $2 additional loss into it, and paid the haircut on all those trades. Go on, tell me more... As to what's better: trades with alpha. And that's something you don't get simply from trading...

Ever considered that they DO understand and disagree with you for good and sufficient reasons that you have no clue about - and that you'll never have a clue about unless you stop and think about what they're saying? Just a thought.

I don't happen to need a gross of random idiots, so - yeah, it is quite nice, thank you. But if I ever decide to trade one (short side ONLY), I'll structure something with positive expectancy.

You sell a 5-day 97 put on a $100 stock for $1; the price at the next open is down by $10. You're now out $6.50 and assigned at 97. Calls anywhere at or above your cost are going for pennies, so you're screwed. FYI: when you're long theta, you're short gamma. This is the BIG clue, so pay attention.

What a dumbass thing to say. "Just selling time"? As if a sharp price move can't kick your ass? Dude, I get that you're irritated by people not agreeing with you, and that you believe in what you're doing; that's fine, keep your head down and keep ignoring the risks. They'll bite you in the ass...

Since you based it on relationship dynamic terms, I'll give you an example: taking the risk of trusting people in your life to whatever degree your perception says to has a huge positive return - that's what it takes to find love, friendship, and every other sort of good relationship (not doing...

But a short put/covered call going DITM doesn't bother you? Wow. That... takes a complicated set of rationalizations. If you're terrified, don't trade. I'm 1000% serious: if your trading is driven by emotions, then all you're doing is flushing your money down the crapper while entertaining...