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i closed out the position, although it wouldve been profitable if i didnt buy those 3 calls, but instead only bought one.

when you trade options, what is your target objective for having a higher probability of profit for your positions? outside of being right on the direcrion.

do you have any recommendations for books?

iv ive been reading optionsplaybook, some tastytrade vids, some of the other free option sites. i will look up gamma scalping. im just trying to profit off the movement of thw underlying, by closing one side at a time. like right now, i can close the sept 11 call, short put, and short stock...

so youre saying there is an options combination equivalent to what i have on now, that is more effective?

If it stays below, at expiration youd receive the credit + difference between the short put and your short stock. and to limit your upside losss with a long call, which can also turn positive with the long call. So, on the upside, im expecting that the theta decay + delta of the short put +...

so i posted my position earlier which i learned what it was actually called. So what are the merits you find with a calendar synthetic short call, where the short call is on the back month and the long call is in the front month? i.e short 100 spy @198 short sept 25 spy 197 put for 6.00 long...

closed the sept 4 call, total loss for all three about $300 bought sept 11, 198 call for 1.30. short put - same short stock - same

haha yeah, well i havent blown up my account yet. been playing with the same money for 8 years. just started options about 1.5 years ago.

well if i close it out right now, im at a $70 loss but a possible gain of $24.

thanks for all the response. Anyway, this trade was poorly executed. To recover, this is what I will do. Current position after commissions -100 shares @197.85 = +197.85 - daily interest rate % 2, 1.08 + 15% = 1.25 per day -1 put @197 for credit of 6.67, $667 +1 sept 4 200.5 call (was 3...

my intent, was to use a short put below my short stock in order to purchase a call to cover the upside risk.

dont know why this made me laugh

Okay, so I know where I screwed my trade. it was the two additional calls and the ignoring of time value. So revised Position is: shares - 100 = +19800 Call 200 +1 = -150 put 197.50 - 1 =+470 (470= 50 intrinsic, 420 Time value, so linear decay would be about 0.23 per day) =20120 If...

checked the interest rate which is about 2%.

thanks, i looked it up after i posted.

what about the short stock i have there. not trying to prove the startegt, just trying to see if im not seeing something that should be obvious.

O Okay, so lets say, the spy completely tanks. i will be able to roll the 197.50 put for an even higher premium which would offset the loss on the original 197.50 put. the excess can be used to purchase a call at the same strike of 200.50(which will be substantially less on a week to week...

Hi guys, new to the forum here, and no matter which way I look at this, I cant seem to find a negative to this strategy...in the long run. It also ties up some margin (which I didn't consider). I shorted 198 SPY x 100 shares = $+19800 (less commissions) Sold 1x 197.50 sept 18 put for credit of...