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ooops, I misread the title of this thread. If we're talking about the end of Feb, I would look at the March Fly, not the February. The debit would be in the $180 range. Not quite as attractive as February, but additional time to move to $100. I still like it. My first blush indication...

I don't know what is the BEST. That having been said, a February 90/100/110 Call Fly for $1.45 produces a very nice risk graph at $100. If I opened this trade, I would exit if the stock hit $100, irrespective of When that happened. Good luck. Bob

Thanks again Ursa. Regarding "expected dividends", I have a pretty firm rule that I shy away from shorting dividend paying stocks. Reason is that if I am short the stock on the morning it goes ex-dividend I have to pay the dividend. That's not a lot of fun. In this regard, QQQQ is a...

Ursa, thank you very much for the kind response. I really do appreciate it very much. You inquired as to the interest expense computation when shorting stocks is involved. Perhaps I can lay it out here with a very basic example. Assume one has cash in their account of exactly $2,000...

On the double theta thing, I have two comments. 1. I never said it was the One Big Advantage. I just used it as a starter. 2. I was completely wrong on this point. I have previously thanked those who pointed it out and I express that thanks again. (I would also appreciate it if someone...

Ursa, you also stated, "He opens by describing a strategy that has came up in his mind, not actually traded or tested or researched. That wouldn't be a problem in itself but the tone suggests that we have here someone using this method day-in-day out." I know several who use this on a regular...

Nikko, look at SmilingSinc's response. He said he was not talking about margin interest expense. He said he was talking about the margin requirement. They are two separate issues. My comment on the equity account balance had nothing to do with interest expense. And it also has nothing to do...

Ursa, in the middle of your posting above you state, "Now, instead of addressing this obvious misconception, thanking for the new insights or even debating its validity, you totally ignore it." I stated on several occasions in this thread that how appreciative I am for the helpful responses...

SmilingSynic, thanks for clarifying that you were not talking about the margin interest charge, but the margin requirement. Let me throw out for your response, how I have been handling the margin requirement under Reg. T for my stock shorting up to now. I open my short stock positions in an...

MTE, thank you for explaining "spot" and "edge". It was clear and very helpful. jj90, when George decided that he was no longer going to participate on the Optionetics Board, the learning curve there went way way down. He used to provide so many worthwhile pointers regarding Butterflies...

Rally, I can't promise not to start another of these stupid threads. Just look over this thread and look at so much valuable information I got, which I would never have otherwise obtained. I will take your advice and do a search on "Gamma Scalping". I really thought I understood this, but...

Damon, in your suggestion that I read a book on synthetics, do those books merely define the various synthetics, or do they delve into whether and under which scenarios does a synthetic work better than the natural. If I were going to get just one book, does anyone have a suggestion? Bob

Smilingcynic, I'm with you all the way regarding the application of Reg. T, especially as it applies to the margin interest charge. I've been shorting stocks for a long time so I have a pretty good handle on how the interest charge works. If I short a stock and the price of the stock goes...

Rally, I don't always short shares in blocks of 100. Bob

Richard, the reason I don't list all of the reasons is that there are so many people here who will blast away at anything I say. Just look at what has happened already in the first hour or so, with just one reason. I would rather defend one theory at a time. So, sticking to this one, the...

This simple strategy consists of: A. Buying Calls B. Shorting Stock In sufficient quantity so that the deltas are neutralized. Yes, this is a synthetic straddle, but I think there are several advantages to this over a regular straddle. To start this thread I'll mention just one for now...

I would like to add one more thing about the Wash Sale rules. Even where the Wash Sale rules act to disallow one's loss, it is not a permanent disallowance. It is merely a timing difference. The reason is that the basis of the replacement stock is increased by the amount of disallowed...

This is a very interesting and very sophisticated subject. Hopefully I can get the ball rolling with the following: With delta neutral offsetting positions, negative net gamma causes this to loose whenever the underlying moves, no matter what one does to adjust the deltas. On the other...

Spin, good answer to a tough question. Bob

MTE, no I don't expect you to read my mind, or anyone else's mind. These public Bulletin Boards are not the most efficient means of communicating. You, Nikko, and I do the best we can in the circumstances. We are all people who are passionate about this subject of options trading. In that...