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Your wide Iron Condor performs simplee maaaavelously if it does what you want it to do. If it moves outside the short strikes of the body, not so much.

Your statement is correct. The short put seller will always lose less than the outright buyer of the underlying. Lindq's explanation is diversion to convince you otherwise.

It's not how big it is, it's how you use it.

Simon & Garfunkel already covered it with "El Condor Pasa". I would have gone with naming a rock band "Iron Condor".

"What's in a name?" Regardless of what you call it, it still performs the same. If volatility shoots up, far OTM strikes will benefit more percentage wise but the strikes of the body of the condor will lose more dollars, even adjusted by the 3:2 ratio.

:thumbsdown: o_O :vomit:

You select a strike to sell based on your outlook for the stock rather than looking at a sliding scale of potential returns and picking a happy number. Be that as it may... The problem with calculating return from selling short options is the cost basis. The highest number will be based on...

Stop with the trick questions :D Selling covered calls is very safe (for the broker) and selling short puts can lead to disaster. Well, at least the way they present it out there.

Are the premiums of these stocks really that ridiculous? If all else is constant, time premium is linear, considering price. FB and AMZN have similar IVs in the low 20's. AMZN is 8.5 times the price of FB so the time premium of its options will be approximately the same. Low 20's IV for such...

Yes, a narrow collar will not do much to help one's portfolio grow in a roaring bull market. If the collar can only make 20% for every dollar the stock goes up then it can only lose 20% for every dollar the stock drops. In order for "Greg" to lose money with long stock collars in a roaring bull...

Don't mean to split hairs but are you legging into the combo or are you averaging in by buying (or selling) the combos at different prices, eg. increasing position size? My initial question was geared to what is OA recommending when it comes to long stock collars? Buy all three legs of the...

What is Gregs fund? Is that the personal money of an instructor or something else? If one loses money with long stock collars in a roaring bull then there must be some terrible stock selection involved.

Thanks for your assessment of your OptionsAnimal experience. >> OptionsAnimal is very helpful helping students protect capital with strategies such as the married put and the collar trade. << Are these opening positions or legged in positions? >> I believe that this program is catered...

Since no one addressed most of your questions, I'll take a stab. Most of the option pricing variables are known at any given moment and are not subject to much, if any fluctuation (strike, time, dividend, interest rate). Price changes but that's known at any given moment. The wild card is...

Ironchef, I understand options on the retail level, having used them in a variety of ways for 35+ years. It's nowhere near what some of the pros here comprehend and share. I am not upset. If you thought that my ranting against the academic pinhead study made you think that it was directed...

Scraping fees from investors and traders (rather than from actually trading) provides a very nice ongoing annuity.

Comparing yourself to a money manager is a specious analogy and rest assured that it is NEVER my concern how selling advice is good for a snake oil salesman.

Your article at Steady Options is a streaming load of you know what and it supports my point completely. As the author of the article and as a seller of pricey subscription advice, you have nicely explained why selling advice is beneficial to YOU. After reading that, I feel like I just had a...

If you sell calls, pick stocks that don't go up. If you sell puts, pick stocks that don't go down. Pretty simple, eh? Call me a cynic but if some service had a high percentage ability to pick stocks that do this, why would they sell the touts for peanuts when they could be selling the sh*t...

I'm asking myself, "Why I am bothering with this?" "That's a good question", I answered myself. Be that as it may... This study concludes that that the covered combination and covered call strategies outperform the long stock strategy which outperforms the collar and protective put...