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Because he's a closet put seller and doesn't know it :)

I reread your initial post,and see that you are in a buy write so yes,you get flat if called away early.. You still do not understand why someone exercises a call early... Ask yourself why any sane person would exercise a call early..What do they gain,and more importantly what are they giving...

Think about what you are saying and if it makes any sense... Reread what i wrote and you may have a better understanding of why someones exercises a call early..It has NOTHING to do with directional bias.. Your last sentence is a head scratcher,and not because I dont understand it...You sell a...

Don't see how you can have a viable system with stocks that have buy in risk... The borrow costs alone seem prohibitive.. Im assuming he's not trading reversals thinking there is an arb..

Are you factoring no risk on being assigned on the short call??

I say yes it can be written off..

Q,I think you traded it in the style you did as it was a one lot,and to your credit you pressed your bet...If you had a "meaningful" position on,how would you have traded it?? My best guess is you will be selling your long option or some other to lock in a profit should TSLA continue to...

Q,I think you traded it in the style you did as it was a one lot,and to your credit you pressed your bet...If you had a "meaningful" position on,how would you have traded it?? My best guess is you will be selling your long option or some other to lock in a profit should TSLA continue to...

Are you saying a backspread outperforms a long call with the same delta?? What duration Your answer is a bit loose... Quick backtests in the SPY show the naked call does better,but long stock outperforms

OptionStat may work for you https://optionstrat.com/

Take the trial...Do you really want to risk money on a program that is being given away for FREE??? Its analogous to "If you have a 10 dollar head,go buy a 10 dollar motorcycle helmut"

Yes there is..They have a new screener/scanner with is about to be released which is MUCH better than the old one..Its really good,and in addition to the quant/distribution/forcast metrics ( theoretical edge),it also has terminal R/R metrics as well as probability of profit.. You can also...

Check out Orats and run some scans and simulations and see what risk reward profile works for you

That leaves 4 choices A. Quantitative Measure B. Gut feel C. Stops D. Coin Flip

ugghhh..meant to say sticky delta...

Theoretical edge comes from Orats,and in particular their metric D%..Im going to ask Matt to chime in,but here's a quick discussion https://www.elitetrader.com/et/threads/what-is-iv.361608/page-16 I tend to trade alot of shorter dated OTM flys,split flys and operate under a sticky strike...

If you are going to trade skew in a meaningful way,you cant be short the wings.. In my world,it's typically some sort of fly structure,balanced or not... It typically boils down to the trade being somewhat directional in nature with a bit of theoretical edge.. And then there's the Sticky...

Seems like you may "want" to read up on Money management and volatility based position sizing. If you are more technically inclined,you could sub technical levels for vol/atr..

No magic here,no secret sauce....Its all about Having 2 sided flow.... No flow,Ild look at long gamma in a dispersion type format

The Mickey..Pretty sure I quoted him....