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Any short position that has an inverted triangle in the center of the risk graph will look somewhat similar to your graph in a one week view before expiration (calendar, straddle, strangle, etc.). In addition, you have no idea if/how they actively adjusted their positions when they moved...

HUH?

Every option position (excluding locked ins like conversions, etc) has a siginificant downside if your time/directional dreams don't come true :)

If you are bullish long term but have no clue short term, you have to either take a long term position (9 months to LEAPS) or wait it out until your trend develops. Options enable you to place a finely tuned sophisticated bet on your opinion. The problem is having a good opinion :)

All the people long the open interest

I would assume that all of the exchanges support the same combos but that's no more than speculation. Each broker has a menu of combo orders that it offers and that's the limiting factor. Some offer more, some less.

I think you're missing the true absurdity of their brain fart. The dividend is your own stock money. On ex-div, they give you XX cents of div and take away XX cents from the price of the stock. It's not even a wash because there are extra commissions and more slippage. If that's the...

If synthetic equivalents exist, you can avoid this. Re your first post, if the multi-leg position doesn't exist as a single order, look for a combination of the largest existing combos that achieve it. For example, a broken iron condor could be placed as two strangle orders or placed as two...

In the perfect outcome, every option position makes its maximum profit and everyone on ET gets rich. But in the real world, it usualy doesn't work out that way. If NLY "sits" for 18 months, it's going to drop 50 cts every 3 months and that would make the $18 strike further and further away...

You're not "capturing" the div. If right on direction and timing, for all stocks, diagonal spreads reduce risk and multiply yield - not just high div stocks. If you look at the dividend adjusted IV of the call, it's no bargain (it will be in line with the closer month options). Call...

You can use a pricing formula in a spreadsheet to calculate the raw numbers. Web and stand alone programs exist as well. Some graph the positions. THo I don't use them, here's a couple: http://www.optionsprofitcalculator.com/ http://www.ivolatility.com/calc/...

It's a diagonal collar which is equivalent to a diagonal spread. The problem is that the long Sep put will decay faster than the short Dec call so as time goes by, the disparity b/t the two will increase (not good for you). AFAIK, the only thing that makes sense with this position (and I'm...

If you think CL will drop "down to where I think it might go before it moves back up", don't go long. Let price come to you. If you are bullish, don't write a covered call anywhere within the area you expect the UL to go up to. Eg, write well OTM. CC's are for neutral to mildly bullish...

The sky is falling! The sky is falling! Henny Penny just ran by with his shorts on

If you look in the mirror and drive backwards, you're a short trader :D

ETFs are T+3 settlement and that can be a problem in a cash account. In a margin account, broker will lend to you.

In addition, Google "Options + Hedging" and try reading some of it :)

If the amount of TP in the puts exceeds exit cost, you're better off closing the position with a combo order. If the put is trading below parity, exercise it to close the stock position.