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---------------------------------------------------------------------- Quote from spindr0: If the spread had guaranteed losses, no one would ever do them. Try again...check synthetics ---------------------------------------------------------------------- You assume too much. If the...

----------------------------------------------------------------------- Quote from spindr0: If the spread had guaranteed losses, no one would ever do them. Try again...check synthetics ----------------------------------------------------------------------- How about looking at some optipon...

Consider a conversion profit formula: conv = strike - stock + call -put - carry + div Assume stock at strike, no div and fair pricing then: call = put + carry If the carry cost increases, the difference b/t the p&c increases, the bump being split b/t them. IOW, if the carry cost...

It's a moot point because backspreads aren't viable the day before/the day of expiration because the OTM leg is usually almost worthless by then.

On an expiration basis, the risk is the difference in strikes plus the debit cost of the position. For a few day/week hold, IV contraction and time decay are significant factor. For an overnight earnings play, time decay is irrelevant and IV contraction is a factor but not as bad as you'd...

If the spread had guaranteed losses, no one would ever do them. Try again...check synthetics

Guarantees? Death and taxes. The rest is up for grabs :)

It's an IF/THEN answer. If you buy more protection then you risk less but make less. If the protection is further OTM, it costs less but protects less. If you buy only puts but the call side gets into trouble, then... The gist of it is that add'l protective legs enable you to tailor the...

Thank you muchly - make em chocolate chip :)

Edit... this is poorly phrased. A collar equals a vertical. If one had no equity position, one would be better served by doing the vertical since there's less slippage and commissions... unless one's intent was to intraday trade a component (usually the underlying) against the position.

Just a guess, ARNA?

Any chance you're blitzed on Friday and sober on Monday ?? :D

DITTO

Is it possible that your Monday gains are come from underlying movement?

I just don't understand why people pay good money for bad advice. Save the subscription costs and lose the 30% yourself! :D

It's the ONLY way?

Hi, I'm new here (ignore the previous 2677 posts). Has anyone ever heard of the Kim Snider technique? (vacant Valley boy stare)

Yeh, can you believe it? The Goldman Sachs option trading desk does their calcs on the backs of discarded envelopes. They really need to check out the FREE option software available on ET links.

De nada :)

It's gotta be wonderful software cause several first time posters all recommended it!