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Thanks Daddy's Boy. As we go down the road and I show the various revisions to my AAPL trade, you will observe that more often than not I have combinations which don't meet the definition of any defined strategy, synthetic or otherwise. I promise, it will be interesting. Meanwhile, we will...

Daddy's Boy and Others...So often posters here try to inject the question of whether a particular strategy is "superior" to another strategy. With all of the postings I have done I never look at things comparatively. Options trading is not a one size fits all proposition. What works for...

MTE, as I have previously stated, my only relationship with Optionetics is that I presently subscribe to their Platinum computer service and my subscription is on a monthly basis. I am NOT affiliated with them in any way, shape, or form. I have never been and have no intention to ever be in...

Hi gang. I really do appreciate each and every responses. To those who aren't comfortable with this and would rather do verticals. Great. One should never do any kind of financial transaction they're not comfortable with. Regarding verticals, I've done more than my share of them over the...

Hi Richard. By now it is probably apparent that I RARELY do the normal reverse collars, which is: Short 100 shares of UND Long 1 Current Month ATM Call Short 1 Current Month ATM Put On some rare occasions such as now, I ironically find myself with a calendarized version of a Reverse...

IV Trader, what I'm doing here is, in my view, an excellent form of Gamma Scalping. Here's what I mean: 1. Let's just look at my legs (a) and (b). 2. Start with (b) and long the Calls of your choice. Although not necessary let's start with ATM calls. 3. Let's assume 2 above...

IV Trader, I apologize for being terse and abrupt in my opening sentence. I was bothered because I admitted in the prior posting when I laid out the trade that I recognized that this was a synthetic calendar spread. Then, your initial response was to insert a proforma $15 move down. Had...

IV Trader. I misunderstood you. I didn't realize that what you were talking about involved playing with ourselves. Rather than you or I doing "what If's", why not wait and let AAPL, and the options markets tell us what's going to happen. Also, I didn't say that this was a Vega event. The...

IV Trader...sounds like a plan. I don't know where this will end up, but what the hell, if I fall on my face and end up looking foolish, so be it. Let's start with: (a) Short 1,000 AAPL at Friday's closing price. (b) Buy 10 AAPL Jul $85C at Friday's closing Ask price. (c) Short 10 AAPL...

Daddy's Boy, Sorry about the math error. Of course you are right. It is $75,000. That's what happens when one posts late in the evening. Regarding your second question of whether one strategy is superior to another...No, I can not show whether one is supeior to another or not. I don't...

Don, you are completely correct in stating that Calls are slightly more expensive than Puts. It's something that I am aware of and have made a decision to just live with it. Good point. 4Q

8 Ball, you requested that I expand upon (1) in my posting this morning at which time I stated: "(1) I don't always have shorted puts, because their only purpose is to help defray the expense of the long calls." The first two parts of a Regular Collar are (a) long the stock and (b) long...

Don, in a reverse, the proceeds from the short put accomplishes the same thing as the short call in the Regular. 4Q

Don, respectfully I disagree that the cost of a Reverse is not lower than the Regular Collar. Regarding the fact that interest is not paid to me on the short sale proceeds of the stock, I cover this on Page 3 here in my response to Eliot. Regarding the fact that interest is included in the...

Hi YIP. What I meant when I said that the percentage return on investment is higher in a Reverse Collar than a Regular Collar is that the denominator for computing the percentage is significantly lower. In a Reverse, I regard the denominator as the Maximum Risk. I recognize that this...

Hi gang. I'll respond to Eliot's points, when he said: I am definitely interested in seeing your adjustments, on both sides. 1) I was a bit disappointed to find that my broker (and I think all of them do this) keep the cash from shorting separate from my regular money market cash, thus I...

Regular Collar vs Reverse Collar....One principal advantage of the Reverse: It's much cheaper. In the end it's about which alternative produces the highest annual percentage return. Based on my experience it's a no brainer. Other than the amount of the downstroke, the flexibility of the...

8 Ball, to partially answer your question. Regarding the shorted puts let me say... (1) I don't always have shorted puts, because their only purpose is to help defray the expense of the long calls. (2) When I short puts, I short them ATM because as we both know, the extrinsic value is...

OK, we're off to a great start and I thank everyone who contributed. Actually, I don't look upon this strategy as being either bullish, bearish, or neutral. One simple reason...I adjust my trade each time the underlying moves to a new strike price. By the way, the key is in the adjustments...

OK Coach and Eliot, I did a kick off posting in the Reverse Collar new thread. Let's see what happens. 4Q