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eVER HEAR OF CHANGE IN IV ??

OK, we're on the same page now. Forget the call being sold. Howwwww-ever... :) The key to the above statement is finding an undervalued below parity ITM put (where I'm stretching the meaning of parity to include the dividend). Buying the stock against that put is a way to capitalize on...

No one is suggesting that long options are similar to short options. It's kinda obvious that they are :)

I took a quick look earlier at the site and I'm pretty sure that one of their strategies was the synthetic long OTM call (buy stock, buy deep ITM put). It's late so I'll look more closely tomorrow.

I'm going to assume that we're not talking about conversions. IOW, when you buy the stock and the put and sell a call, the strikes are different. That's a vertical and I can't imagine that there are going to be many (if any) verticals where there's no risk if the stock is at or below the put's...

JJacksET4, If you hadn't heard/seen, the free historical quotes at Crimsonmind have gone pay per view ($49 a month). If you come across another free site, plz post. Thx

Dividends received finance nothing. They are payment to you with your own money (the stock price is reduced by that amount on ex div). In order for the dividend to be yours, the stock must rise. If it flatlines or drops, you've gained nothing. Collars are verticals. They are not risk free...

He's busy trying to formulate a second ET post :)

Ummm, backspreads aren't exactly positions where the worst case scenario is a small loss (the OP's premise)

Safer doesn't determine success. Buying long puts and calls and being absolutely wrong all the time about direction may be safer but loses significant $$. A covered call may be safer than long stock but if you fixate on collecting the premium (as most do) and ignore the stock, you...

Buy sheep Sell deer

They work 100% of the time... in hindsight :p

------------------------------------------------------------------- Quote from spindr0: My Excel formulas aren't very bright. They can't analyze charts so I am forced to look at numbers only ------------------------------------------------------------------- LOL. I guess the irony of...

Not a spread since a collar consists of a short call and a long put (or vice versa if short the underlying) Collar = UL - C2 + P1 UL - C2 = - P2 (covered call = naked put) So Collar = P1 - P2 ... where P1 and P2 are puts with different strikes and that's a vertical Clear as mud? :)

A collar is equivalent to a vertical spread and ignoring the fortunate leg in, it definitely has a loss potential. Conversions and reversals etc. have locked in gains (carry rate) but I'd hardly call them spreads.

My Excel formulas aren't very bright. They can't analyze charts so I am forced to look at numbers only :)

No such animal exists. If it did, no one would trade anything else.

John Bollinger would be proud of you.