Thanks!
And say in a 65/70 spread, stock price reaches 67 and the option is exercised.
That leaves me with shares short at 65.
At that point I can close the 70 call or what? I have to balance out the short risk?
Isn't it better to put on a wide credit spread as it increases profit?
Say you:
Sell a call@65 with a premium of 2
You buy a call@70 with a premium of 1.
Why not buy a call@85 - isn't it going to be cheaper and therefore increase your profit margin?
2 losses in the morning and I take a break until the afternoon session. Then same thing. So, 4 losses in a day and I close everything down until tomorrow.
Say you put a credit spread on but the option buyer decides to exercise their option early. What does the broker do, will they also auto close the other side of the spread trade or do you have to do that yourself? What if there is a time difference say I couldn't get to my screen to do that...
You could also say that institutions wanted an excuse to sell so blamed the news :)
As always, you must combine fundamental and technical to trade well.
You're competing globally on Upwork and sites like freelancer. It's just impossible because someone in India is easily going to be able to undercut you, generate lots of reviews, etc.
Most firms want maths, statistics backgrounds...
You're not supposed to know. That's why I'm essentially asking about insurance!
A recovery is useless if you either get margin called or shit yourself and close at the bottom