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Yes to all with some fine tuning. If your expectation is a big move up, certainly, add the long delta because if you don't, you'll spend the next $1.60-$1.70 (or so) of an up move making up the drop plus the decay incurred during the elapsed time (assuming no IV bump). If you expect a...

Covered calls reduce the upside if the stock moves up past the strike. Period. End of story. Even worse, when the stock gets near the strike, if there's a decent of time remaining until expiration, the short call will have plenty of TP remaining and your net gain will be less than had you...

If you trade 15-20 contracts a month (round trip), look elsewhere. B/A slippage is bad enough but that rate is too much to swallow (gulp)

Ignoring the sagacity of selling said 3 cent options, some brokers charge 25 cts (or less) for that.

The point of gamma scalping is to profit from the stock movement in either direction and to some extent, IV change. In that context, the short answer is that I'd add some positive delta. But doing so (or anything else) isn't always the best thing to do because you have no clue what is going to...

That's a good idea. I place a lot of orders somehwhat away from the market. I find that if I enter the price first, then enter the # of shares and then double check the price again, I rarely screw up. If you're trading away from the natural, you have to be very careful in the pre/post...

I really like option strategies that make money :)

Nice try but no save for you. Using your ITM calendar call spread example to justify your incorrect statement that a covered call writer pays the dividend out of pocket was just a poor stab at saving face. Everyone replying has exercised their call on you :)

The only way that you pay out the dividend is if you are short the stock the day before the ex-div date. Period. End of story. Not a payout date but the ex-div date. If you are assigned on your short calls the day before ex-div and you exercise your long calls, it's a wash - no dividend...

Good skew but you may have problems closing this for gain by Weds if front month IV continues up. Also a problem holding thru earnings if May IV drops to historical (low 20's).

tRY AGAIN

You would be responsible for paying out the dividend on a covered call? Hello?

What strike to write involves a balance b/t choosing projected return (unchanged vs. assigned) and downside protection. The more ITM the strike written, the greater the downside protection (DP) but the lower the upside return. The more OTM, lower the downside but the greater the return if...

Double diagonal can also have "no movement" risk if distance b/t strikes is wide since 1 week OTM strangle will bring in little (theta decay of weekly will not offset that of the straddle). Tough position to make money for earnings unless near month large skew and far month IV not grossly...

You can have A or you can have B ... or as mentioned previously, scale out use trailing stops as well

He's a shnorrer? Maybe some Breathe Right strips would help... :D :confused: :eek: :D

Free lunches are available for underprivileged elementary school kids. shall we enroll? :D

More later, time permitting...

OK, so you didn't get hammered after being hammered. Got it. Sorta like voting against it after voting for it? :) There isn't a one size fits all cookie cutter answer for stop losses. As I said previously, getting hammered = a big loss. That should never happen unless there's a gap or a...