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OK guys, sorry for the delay here on Natty. I did not know we can't upload excel files so I'm going to snap shot the images and try to walk through the concept here. So the question is, what are the pros and cons of being in energy spreads vs flat price and more specifically what are the pros...

Of course. That is constant among ALL strategies. I was simply implying that it was better then blindly selling calls every month in low vol dividend paying stocks as a way to be "comforted" from selling the lows.

But you "did" buy them. That's my point, you OWN the stocks. You sell the earnings juice because that is the "premium" the market is offering you to hold the risk going into an event. There is a real economic benefit and purpose being served. No such benefit exists for the call seller of a...

The blood bath in natty continues going into delivery. I apologize for the delay in the convexity commentary...it's coming today.

You need to be more specific. There are over 50 nat gas delivery hubs across the country where there is a spot price. The spot price for "Henry Hub" is determined by daily settlement prices at the Hub not the futures contract.

Here's the problem. One, when the market tanks, vol is not going to uptick much on these stocks on the way down as much as you think. And two, and this is the worst part, say MO sells off 10 pts. You have to write a call almost at the money. As soon as MO bottoms you will be doing EXACTLY...

No, they are two completely separate markets.

Of course there is, but you have to find it. Build a model.

There is no data to back this up and in fact, the data shows otherwise. If what you are saying is true, then by definition anyone who has been long since the 1990's let's say surely won't panic since they made all these profits since then. Heck the ES was at 2500. Surely they would feel...

You missed the point of this thread. The OP was NOT speaking about the advantages of selling options, he was trying to make a psychological point. Can one buffer downside volatility with dividends and premiums to withstand the urge to puke at market lows. He was not espousing the benefits of...

I'm not 100% sure about this, but perhaps if you trade "foreign securities" through IB they may not be held to the PDT rule. So Canadian or European stocks. Not 100% sure. Also, if you don't use margin at all, cash only, you might be able to get around PDT. Not 100% sure. And of course...

The ones I listed are not located in the US and therefore not regulated. I am not aware of ANY firms that fit your criteria in the US. I have asked others to come forward and name a firm as its possible I'm over looking one. This business is a dead model. Firms can't make margins competing...

Listen, I agree with you that retail panics on the lows. We are 100% in agreement. But you are playing monday morning quarterback saying after the fact how people will feel long after having the comfort of selling juice all the way down. The fact of the matter is, in the moment no one is...

Again, your own words: "The buy write index was down 39% in 08-09, thats less than the 57% of the SPX(and you just said that SPY is a good div payer). That could be the difference between a huge mistake/panic sell and someone sticking with a strategy (unless you want to claim that additional...

Daal, what's wrong with you man? I'm not picking a fight with you. YES, I agree the buy/write by DEFINITION HAS to outperform on the way down because your loss is = to strike - premium received. Even if you sold a call for a nickel it will by definition outperform. But I completely disagree...

Fine, another random pick. MO. Another fav among widows and orphans. Closed at 63.70 up 1.85 on the day. The Nov 65 calls are .65 bid!!!!!!! Again, we can only go one point out of the money to get a measly .65? The stock moved more then 2 1/2 times friday then the total call premium. I...

Daal, the calls are not cheap because they are underpriced, they are cheap because the dividend payment has to get backed out of them! LOL. OK Daal, I'm quoting your first post on this thread because you are starting to shift the goal posts on me. You did not make the argument that its better...

Daal, let's make this easy. Pick a stock....any stock. Let's look at real numbers. I'll start. JNJ. Good as any other stock. Solid company, good cash flows, favorite among widows and orphans. Stock closed at 113.44. The Nov 120 calls are trading at .11 bid. Zero protection. Let's move...

They are NOT out there. He "thinks" they are. Most of these 5k down shops have gone under. Yes, there are a few in "Cypress" and one in Russia. Name me one firm in the US still a going concern that is doing the 5k model besides these so called "education" firms. Now I may be wrong and there...

Daal, calls carry almost zero premium on dividend stocks. Perhaps you missed that point. We option guys price that divie out. So basically he has zero downside protection and the dividend stocks will drop just as much as SPY because at the end of the day, it IS the SPY. There is no...