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Buy/sell? Depends on how much more they inflate Apr and/or May by Weds.

Anything stirring up with ISRG ?

They are wash sale violations even if they have no effect on your taxes. Technically, they should be reported correctly. However, for many years I did as you suggest, and there were no repercussions. I did not and still do not believe that the IRS is going to waste thier time making one fill...

Account size has nothing to do with the success of writing naked.

If anyone could achieve such profits, why would they waste time running an advisory group? Or as someone else in the chain aptly put it, why would anyone ever buy a long option if one could achieve 40 per month short ??????????????????????????

Since the bull spread has a constant value outside of the strikes, the synthetic call is the dominant position. So essentially, the risk profile is similar to one long call. The return is gassed above the put spread and reduced below it by the amount of the spread's net gain or debit.

I'd call it a put protected commission generator (the synthetic) :)

General consensus from what I've read here is that TOS has the best tools and IB has the best rates (per contract). Some go with both for the best of both worlds (g)

What's the advantage of back months? They offer a lower net credit. Or did you mean diagonalizing?

The short answer is that if it doesn't move much, you make money. If it does, you don't. While the risk profile is a bit different, I'd take a look at a calendar straddle. Buy the Aug 40, sell the May 40. If you're right and it goes nowhere, you'll own the Aug 40 straddle at a lower cost...

I think that at that time, Martha had a new roommate who was exercising her :D :mad: :eek:

This is a really good point. Option positions can be supported outside of regular hours, particularly with earnings announcements where the price has moved dramatically and a reversal is a concern. You can lock in gains or in the case of a more complex spread, adjust the position to shift the...

If the option is 1 pt ITM and it's worth $1.50, why would the holder take $1 via exercise when he can sell the option for $1.50 ??? In addition, at most firms, exercise ISN't free. Why would he incur an extra commissions via exercise as well?

Are you sure that's not an April Fool? :D

Dayam!!! Why didn't I think of that? (whacks head with telephone)

Yes, the 44c sell was a bad choice because it locked in a $2 loss. Selling the underlying at 44 would have been even a worse choice, because his 37p/39c strangle cos 16.50 and that would have locked in a 11.50 loss to the upside. If you meant selling enough stock short to go delta neutral...

There's no simple answer because what's best depends on the future. Since you felt that that a reversal was temporary, doing something to lock in some of the call's gains or reducing the strangle's cost was appropriate. Because you paid top dollar for the strangle (high IV), you needed a lot...

During the month, puts are usually cheaper at the high print of the stock and calls are usually cheaper at the low print of the stock.