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As we exchanged in the PM messages, you know that there are many ways to play your hand where you can just come on top. Some you already now, and others will come. The people who answered your post did their best, and I think they should be thanked. They just saw your question from another...

A straddle has the LOWEST bid-ask spread. There is no better.

I follow IWM. A rally should come soon or when IWM is around 65. It does not matter who wins, oses, speaks, etc..

As in my above post, MTE is NOT always correct. Maybe correct only at two points in time, and may not be correct even at the beginning for certain strikes when carry is non zero and exercise is american.

Not correct if you exclude two instants: (1) when position is opened, and (2) at expiration. Also not correct even at time of opening position for certain strikes if cost of carry is not zero, and exercise is american .

Good, just move the posts to collect your money.

But in 91/90 there was something good to look forward to. Declining inflation, declining interest rates from higher levels, the beginning of the internet revolution, end of cold war, America the superpower, etc. What are the catalysts in this case? We have the exact opposite picture.

The future threat to american supremacy in economy, military, and financial affairs is in the east (China). Wall street made china's capital happen, and american companies are sending money and jobs to the east, while US decision makers spent their time fighting the arabs/muslims who are their...

You took my analogy, and made it a theory. Your wording is nice! Here is another way to look at things. Imagine that your HF or financial advisor is a boxing/martial art champ. Now who do you want to be on your side: 1. Bruce Lee with his fancy moves (but probably no punch in reality) in a...

Here another point you are missing. In futures a position requires a minimum capital. For the same capital, you can scale when you enter and exit using a stock etf that indexes well with a future contract. You can not do that if capital is low and you use futures, unless a fractional future is...

Interest on (444.60+63-62)) at 5% is 19.49. The max return is 460-444.60-1, which is less than 19.49. So the above example is not good as it does not lead to a reward which is higher than the interest cost. The other example fits the bill as the max reward is higher than interest cost.

No need to get anybody as I am after no body. But if you mean that you saw some people running to the bushes, no problem there. They will come out or die as the bushes are burning,and there won't be a place for anybody to hide in alive. :)

can be re-phrased as: So position becomes a CC if stock is above 480

You do not make money over 480. The gains stop at 480. So reward is limited to 20pts. call will be ITM, but you own GOOG, the stock that is (in addition to the put).

Is it possible to be a little bit more precise in your meaning of the words "low risk"? Does the expression "low risk" include or exclude the case of no loss of capital as donnap explained earlier?

I have not checked the numbers of Donnap, but assuming they are correct, what I understand Donnap saying is this: 1. Put-Call can be done for 2 points debit. 2. GOOG at 457ish. The above means that the cost basis is somewhere between 459 and 460. The put guarantees that you sell at no...

Turkey: You now made my day! But do not get that neck of yours cut again buddy!:D

Donnap: Thanks for taking the lead. Finally an expert coming with thought provoking answers! I would add that my above statement focused (in your terminology) on no capital loss, and I noticed that you noticed its accurate meaning. One can of course also forego part of the capital cost, rather...

I thought to step aside a bit, and let others contribute. I will allow donnap to take the lead in answering your question, which can be achieved in multiple ways.

I just wanted to let you know that I really sympathize with you.The market is there, and I think with prudence and perseverance, you will get many times that money. So please do not give up (Most of the successful people have lost money at one point or another). In addition sharing your...