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Walt, I'm convinced that the risk profile that I'm looking for is going to come from a blend of several stratgies or one strategy with extra leg(s) added. I just don't know what that is yet. I'd like something like the DBWB but with a tad more profit potential but still maintaining the wide...

LOL. Perhaps nobody had the right answer to the wrong question???

If you're referring to quotes on the Trading Screen, the data should save automatically. Next time, before logging off, try saving things manually by clicking FILE in the upper left corner and then SAVE SETTINGS to see if that does it. If you're option quotes are in the OPTION TRADER module...

Would you settle for $4 ? :) Try the LVS Jan 2012 20 call

Nice comparison of the 3 positions and I agree with almost all of your conclusions. I'd add that the DBWB is not going to be very sensitve to price or IV change. The other two positions will be smacked by IV increase and/or price movement. The ability of the short strangle to realize a...

Not exactly. Prior to expiration, break even is a moving target and where it is at any given time depends on the what the IV is and the amount of time remaining until expiration. Essentailly, break even is right now at 15 because your naked call loses money right away if the UL moves up...

You could also reduce your cash outlay by buying the 1 year put instead of the 2 year put. While the decay rate of the 1 year will be a bit faster, it will be less sensitive to IV change - good if it contracts, worse if it expands.

If it's before expiration, the call can double in value before the underlying (UL) reaches 25. The sooner the rise, the lower the UL price required. Any increase in implied volatility will make that BE price even lower. Apart from the aforementioned dividend situation, if there's time...

Thanks for the detailed analysis. But before going forward, a clarification. I thought that we were talking about a collar (see your post on page 2). To me that would mean a Feb 630 call and a Jan 620 put. You're using the same strike in your example. Either we're talking about 2...

If there's a drop of say 100 points or so AND a spike in IV, those naked nickel puts could wreak havoc with one's margin.

I must be missing something. The gain from capturing the put premium plus the gain on the put won't offset all of the stock loss. It's a slow losing battle as the UL declines. A collar is equivalent to a vertical so I wonder how one could do up to 5 consecutive monthly bullish verticals...

A blast from the past. Kennecott Copper! I must have written covered calls on that one 30 years ago.. and I'm only 36 years old now :)

I won't argue the point because the risk graphs are very different. Ignoring the complications of IV change, an iron condor or ratioed IC (more insurance on the wings), aka an RIC, is going to make more b/t the strikes than a DBWB. So yes, a better risk/reward. But a move toward the wings...

I think that you'll find that doing a 2:3 instead of a 1:2 buy/write (months out) won't make much of a difference if there's a large down move but when you compare the higher decay rate of the 1 month put versus the somewhat lower delta of the 3 month call (compared to the 2 month call in the...

The OP asked why people would buy FOTM SPX put options for $.05 for the front month that are 40-50% OTM. What we're suggesting is that if a month ago you sold those puts to open for a much larger amount, you'd be buying them now to close the position in order to take profits. To buy them...