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I would agree that AAPL looks bullish from here but I can't for the life of me understand why you would consider 1-2 strikes OTM with a variable entry window. The longer you wait, the lower the chance your long shot will pay off, cost notwithstanding. I'd be buying something like the $94.29...

The few VN quotes I've read (including the alleged post on this thread) scream "mental illness". I'll grant that they may not accurately represent his true point of view, but on the off chance that they do . . . wow. That's one scrambled brain. All kinds of ephemeral fluff masquerading as...

Also look into "frequency regulation". As the grid becomes increasingly powered more by renewables such as solar and wind, which are inherently less "steady" in their generation, it leads to more fluctuations in power quality, frequency, etc. These fluctuations must be mitigated, which means...

Understood. I'd keep it proprietary, too. :D

Yikes. I never really looked into how competitive they are on margin because the vast majority of my trades are directional in nature (long call or long put). For the spread traders: is there any easy method or even a website for quickly estimating expectancy of a vertical? I can do it in...

optionsXpress is showing $1600 margin requirement on that trade. ???

Thanks, I'll look into it.

Is there a quick & dirty way to estimate total portfolio theta?

Silence is golden.

You really should not be lecturing on Options 101. We all understand it was a credit spread. What many don't seem to understand is that closing between the strikes upon expiry puts the call seller in a position of large risk due to the notional value of the short leg. Put it this way -- how...

You are short 120 SPY call contracts. Each contract represents 100 shares of SPY. If assigned, you will be required to deliver 12,000 shares of SPY. That's a whole lot of money on the table. Furthermore, on Monday morning your long $196 calls don't exist. They expired.

Your broker isn't obligated to exercise a long call that's OTM.

Really? Explain to me what happens if the short call expires ITM but the long call is OTM. Your broker would sell short 100X shares (per contract). Now you're short a big bundle of stock -- in this example, over $2M worth -- and you're at the mercy of market forces until you can buy those...

I just want to know how you have the balls to risk going short over $2M on a $50K account. I almost always submit close orders on spreads before expiry just because the notional values scare the crap out of me.

Understood, oldnemesis. Thanks.

Rarely. But don't let that stop you from being a troll. <smiley face> Isn't it funny how assholes think a smiley face absolves them of their behavior?

Gosh, it's almost as if you don't listen. Take your bullshit somewhere else. Debit spreads don't reveal their profit until expiry. If you can't accept this, then you're just a troll . . , in addition to an asshole.

Yes, you do need to hold to expiry to make a good comparison. Debit spreads are hedged instruments, and tend not to show much profit prior to expiry even when the underlying is above the short strike. It is this timing issue that makes me less of a fan more than anything else. That said, you...

There is no "outcome" until expiry. You have to hold spreads to expiry -- their value can snap quite a bit at the end of life. This is a useless comparison (so far).

The debit spread also has a lower breakeven point, for starters.