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A standard compound calculator doesn't assume you re-invest all your profit, obviously the size will increase gradually as the account increases, but it's still a fixed x%. Unless you are using some other formula.

"Taxes are like drugs, you pay them once and you'll have to pay them forever!" (From a funny movie)

So you have an issue with my opinion, but do you also have a rational argument for the use of leverage and lending on instruments that would burn any X2 leveraged investment every other month? Or any rational behind crypto lending? Is that for an interest? How are interests meant to be accounted...

I wouldn't give her a minimum wage job... Forget money to manage

Since when expressing an opinion is considered dictatorship?

If you don't regulate it, as long as it has value it will be a hot potato in their hand as you can not turn it off. If you regulate it, you accept it. In my opinion lending and leverage are things that should be disallowed in crypto.

Way too long to read... I stopped when you said op can buy another put to hedge, after he sells his own put, and margin change being irrelevant for a couple of days. Forget the part about hierarchy...

Patrick Boyle is priceless!

@TheDawn I hope you realise that when it comes to options, sometime you argue with people (not me) who just in monthly commisions spend more than an average yearly salary? In other posts, you compared a few grands to months of groceries, which is accurate. Some of the traders you argue...

If the stock moves up away from 11, there is no assignment and no need to do anything.

If the short puts are assigned, and long puts are sold , the margin changes a lot. And if the stocks moves down when un-hedged, let's say to 9$... OP would be losing 2$ (x20000 shares), 40k loss, minus credit and little extrinsic. Instead of the 0.60$ (x20000 shares) 12k loss.

But what is the advange in taking a tiny extrinsic value (3 days), whilst your margin flies to X10 and your risk increases, not decreases, even if just for 3 days?

And even if, the 0$ on PBR has a 0.0...% chance, it could drop a couple of dollars and turn the loss into a x2, 3 or more than predicted loss at inception. I actually own calls on PBR, left over of a call calendar I took at around 14$. I took that while looking for calendar deals on scanners...

I am not sure about the credit OP got, in the info posted I quickly noticed 200 lots, .70 credit and about .28 debit. Depending on fills, let's round it to 40c total credit for 1$ wide, so yes, 60c risk, (60-40 on 100). If he sells the long put of the spread, he is left with short naked puts...

The old man still carries 500$+ in his wallet. And he has all my respect for not being cashless like most millennials... I don't think he even has a computer on his desk, does he? He eats Mac Donald... My absolute respect, but he is way too ancient for cryptos.

Some retired. Even the FED agrees that a digital currency might be the way to go, at least to test. And as someone mentioned, even the regulators want to protect users and whistleblowers... Go figure A BTC still cost 16k... It was about 15$ in 2011 When it gets to 0 (not 1k...) maybe this...

But I think you agree that selling the long puts converts a 70cent risk into a 11$ risk, with substantial margin req change.

Ok, now it makes sense. The post I have quoted didn't make sense, as you are only referring to the short put and its strike price. I trade options, I don't give advices, unless they really basic. The OP trade is pretty basic, I see no reason in confusing it with risky adjustments.

Snowdenov

Are you saying that you can instruct your broker to NOT excersise on a short put expiring itm?