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@taowave nailed it. I don't have anything like his experience in the market, but everything I've learned on my own hide (and given our earlier exchanges about having to try things out in order to really understand them, that's everything I've learned about trading) reflects what he says 100%. I...

I remember that announcement! It was right next to the one with Bill Gates paying for cancer surgery for a little girl if we just forwarded his email enough times, or collected enough pull tabs from soda cans.

I hear they're coming out with an even more powerful one that will finally let us find the answer to the age-old question of "what does 1 + 1 actually equal?" It'll probably blow out every power station in the world, but - well, we have no choice. We must move toward solving the immense mystery...

How do I put this gently... You're just some shmoe in a forum; one who flails about making clueless assertions. I tried to help with a clue or two, but given this kind of entitlement? I owe you something??? Yeah... good luck with finding someone who gives a crap. <PLONK>

The guy looks exactly like the bum that I saw every morning outside Penn Station when I was going to work. I guess those quarters added up after a while... (No content here; move along.)

89.40 is the closest increment at which the above calculator drops a dot on the curve; if you look closely, it's not on the expiration line. At 89.50, the 85 is worthless, the 90 is worth 0.50, and the 95 is worth 5.50 - i.e., equal to the total premium. Backing out the formula for the above...

I learned this a while back from a convo with a former floor trader. His boss would literally slap him on the head when he was trying to calculate the premium for up/down moves and go "duh, LOOK AT THE CHAIN." I'm told it didn't take more than a couple of smacks for him to get it... :)

I suspect he's rather unhappy about being called on this "evil hedge funds" nonsense. I actually found it really funny, since anyone giving even a millisecond of thought to it would see the gaping chasm between the term "hedge fund" and them trying to cause extreme market movement... :D:D:D

That's fine. You want to argue about things that you clearly don't understand, make baseless assertions about my perspectives instead of considering your own, and are unwilling or unable to comprehend what I wrote, so yeah - no point in going on. Good luck with your experiment.

Pray tell, good sir - what is a combo swap? Combos, I get - in fact, I have a couple of them on right now. But if it's not an interest rate swap, you've lost me. :)

So... this "information" is from some sort of an advertising scheme? Hmm. I'm sure they'll only tell you what's true. :p If you actually "want" shares, then you buy them - or maybe just get a quick discount by selling ATM. Trying to get shares by selling puts is like waiting for your neighbor...

Nope; doesn't make sense. With the wheel, you only take stock when you can no longer roll your put out or down for a credit - and when you're assigned a long position in it, you sell calls to make up the loss. The problem is that bit about "at price you don’t mind being short": if you had that...

So... you've been assigned at a loss - a relatively large one, since you couldn't roll out from under it - and now you're going to sell puts (ATM, I presume?) while being short the stock (unlimited risk with zero protection.) And while you've got that amount tied up and not earning anything for...

I'd imagine they only list a subset of the entire market. We're outside RTH, but here's the chain:

What you have not yet been taught is the concept of implied volatility. The price of an option, and thus the level of "protection" depends on it - and 95% is within the range of possible values. A quick scan turns up GBIL (100.07) with an IV of 2.9%; the ATM put is priced 0.75x1.30 for the 173d...

How do you 'start the "wheel"' if you're assigned a short position?

I'm sure there are some - but we'll never know it. :) That's something you keep under your hat at all costs.

Sure you wouldn't rather have a candy bar?

To paraphrase a famous saying, there are two kinds of fools in the world: one says "this is simple, therefore good", the other says "this is complex, therefore better." I don't think complexity in and of itself is beneficial, at least once you get past "simplistic". It may be necessary when you...

This is... a confusing hash of words that can't even be fixed; it just needs to be thrown away. A standard options contract covers 100 shares of the underlying, so "a single option" implies control of 100 shares. Period. The strategy you're proposing is synthetically equivalent to a 2-lot...