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Open interest shows the number of open contracts, each contract has a buyer and a seller, so you cannot say that the options are being written!

That's true, IV_Trader!

Not true! The probabilities may be better, but the risk/reward is worse.

Depends...can be buying, selling, or both.

Please, let's not start this discussion again! This topic has been beaten to death on ET. On a different note, why are people talking about covered calls, the original poster was asking about writing options, he/she didn't say anything about writing options against a portfolio of stocks...

Here's the mathematical analysis. The option has slightly less than 2 weeks to expiry. You have achieved 90% of the max profit. Now you are risking at least 9 to make 1. Does that look like a good trade!?

An ITM call calendar is synthetically equivalent to an OTM put calendar and vice versa so there's no reason to use an ITM one, unless you can get a better fill on it, which is unlikely given that ITM options have wider bid-ask spreads.

When are you rookies gonna learn that there are no arbs in options! If the options are priced a certain way then there's a darn good reason for this!

I think the first step is to clarify what he/she is actually trading, is it call calendars or put calendars! Shorting puts and buying calls is a synthetic long stock! It's not a calendar! If the stock is at the strike that doesn't automatically mean an assignment! Assuming we are...

You can do it on Thinkorswim platform.

One of the traders in the "market wizards" said that the good trades are always hard to get in to, it is the bad trades that are easily filled. I've experienced this many times. If I get a quick fill on the mid then it is usually a sign that the market is gonna move against me.

Depends on what you wanna achieve. Obviously, the closer the price to the market the more likely you'll get a fill. I usually try to get the mid point.

Why don't you ask the SEC?

You can read about it here

Yeah good point.

Gamma, Theta and Vega are bell-shaped, with the peak on ATM strike and are fairly symmetrical. Delta goes from 0 to -1 for puts.

You are seriously long vega so if the IV gets whacked (and it looks elevated) then your position will get whacked as well. Model the P/L with an IV drop of say 500bp...

Selling half the position is one alternative, but since you only bought 1 contract, it's not possible. Another alternative is to sell a higher strike call with the same expiry. By doing this you'll convert the long call into a vertical, lock in a profit and still have some upside.

Do everyone a favour, bring up an SPX chart or some other one for that matter and see what it did between 16th of July and 16th of August, 2007, and then tell me how did covered call guys do!? Especially on 7/26, 8/9, 8/14 and 8/15. Also, take a look at 2/27 of this year... A covered call has...

100 is only valid for equity and cash index options.