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Thanks this is right on. I think I get it now; in the worst case scenario it would be something like I get assigned, the SEC announces the company is under some accounting fraud, forced to sell the stock at a huge loss. Diversification would do away some risks on this but yes the loss would wipe...

thanks for the insights. I definitely only do this on brand-name stocks. However, IMO, these are the 2 worst ultimate scenarios: 1. The brand-name company goes bankrupt. In this case I have 0 recovery and all is lost. 2. I get assigned, the stock drops off a cliff and I just keep selling...

Hi All Suppose you have a working capital of about 800k. Now you do weekly cash secured puts on stocks you are confident to own if assigned, and if assigned sell calls until the stocks are called away. Of course this only works if the market does not crash like in 2000, 2008, etc. Is it...

Thanks guys So basically with long condors there isn't anyway to reduce loss on the position. Maybe iron condors might be better to trade in then, since you can roll...

Hi I tried searching but "long condor" produces way too much results. Basically I am wondering if there are any possible ways to mitigate loss on a long condor position. It seems only iron condor is covered on the web and I am not sure how rolling applies here. Here is an example position...

This is exactly the answer I was looking for. Thanks for the detailed explanation.

right, it may never happen, but say it did, wouldn't it be a very safe trade?

What I posted is not real, its my strategy's hypothetical situation. I can't find actual real quotes that fit what I am describing right now, but I did see them before.

Then it would be something like this AAPL at $111.16 Buy 1 contract Sept 18, 2015 112.00 call at $2.50 Sell 1 contract Sept 18, 2015 112.00 call at $3.20 (not covered)

Thanks for the replies. to clarify from the first reply, I was selling covered calls but the strategy I am asking about is selling naked calls. the second reply is exactly the unlimited risk potential of selling naked calls. and I agree. However, my point is that I also bought 10 calls at...

Hi guys, I am just starting out with options and sold a few covered calls. I was selling calls that don't really have high volume so I saw that sometimes, the bid/ask spread is a good gap ($1 or more). Why can't I simply buy 10 calls and sell 10 calls for the same strike and same expiration...