As dagnyt pointed out, being a retail trader means that a market maker is not your competitor, unless you try to "make markets" and look for arbs.
The advantage that a retail trader has over a market maker is that a retail trader has complete control over the timing of the trades. A market...
There is no basic setup, it's up to you to determine what you require. Some may have multiple charts up, while others may be trading with nothing more than level 2 or DOM, still others may be somewhere in between.
Yes, I'm aware of this, but as you said it yourself, VXN/VIX are not part of the calculation.
And as pointed out by blackjack007 above, the parameters are what causes the margin requirement to be higher for NDX. You can also see the parameters here.
A lot of good stuff has already been said so I'm not gonna repeat it.
However, here's a crack at your example, what happens when the SPY goes down to 82 or 81, which doesn't yet trigger your roll, and then gaps down 10 points on the open? All of a sudden, your 80 put is 8-9 pts ITM!
I think the past year and in particular the last few months have provided ample situations where the naked shorts got burned. We don't really know what your plan is so we can't take it apart to give you constructive advice. All you have mentioned so far is that you plan on selling naked calls...
It's not those 80% of the time that is the problem, it's the other 20%! You can have a winning streak of many months or even years and then give it all back and then some on a single bad trade. There is NO inherent edge in selling options vs. buying them, so "they" are wrong or at least don't...
Good luck pulling 80-180% per year consistently! And you are gonna need double the luck to not blow up if you want to use portfolio margining, which implies that you wanna leverage up your trades.
And good luck with this too!
A collar is never a risk-free position unless you leg into it! And if you think of a collar as a synthetic long call vertical spread (aka bull call spread) then you can easily see why it is so.
The only reason it may look like a risk-free position on some graph is because the cost of carry on...
Don't mean to nitpick, you can't purchase a short IC, it just doesn't make any sense. You either sell an IC or you buy an IC. So, in your case, you entered a limit offer to sell an IC.
My definition of neutral is that you don't care where it goes as long as it doesn't go too far. :) At least, that's how my neutral trading system works.
What do you mean your broker says friday!? Did you ask them about the day or the time? Ask them about the time. Generally, it is 3:30pm Chicago. Market makers may have a bit longer.