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The quarter in premium was from the CNBC trade they described where a credit was received at the time (a week ago). I didn’t yell about not getting a response…I was just curious about understanding the general setup. No need to insult someone that’s trying to learn something, but I guess the...

Anyone have a thought? Am I understanding the setup correctly?

Options Action profiled MSFT with May expiration. I haven't done the trade--just trying to make sure I understand it correctly. Write a 235 put, buy a 265 call; collect a quarter in premium. If one put this trade on, is the worst case scenario that the stock is put to you at 235? At...

Thanks for this recommendation.

Collecting interest is the objective. But don’t want to get killed on the principal.

I appreciate your efforts BMK--I'm just sticking to zero-coupon T-bills. I just don't get it. I sometimes browse corporates yielding more than Treasuries and think maybe I should buy one, but I'm not trying to lose money with a bond. I can't grasp the concepts of bonds (and it's frustrating)...

Actually the second paragraph is more confusing...That's why I stick to the zero-coupon T-bills which I understand or something like AGG for if I want a bond ETF (even though I don't understand how it works it gives the bond exposure).

So then all else equal, if not planning to hold until maturity (10 yrs is a long time to hold) we just want the price to go up to sell at a profit? (I have no idea how I'd calculate a total return)

Yes, I've got that part. It's the others I'm confused about.

What do you mean?

I understand that bond price/rates move in opposite directions. I've bought zero-coupon T-bills and held until maturity (i.e. 4.4% for a couple weeks/month). Simple. You often hear about how someone could get a certain rate on the 2, 5, 10yr, or other types of bonds. So, let's say I buy a...

Thanks for the constructive feedback. I had a feeling when I originally posted that I would get attacked; was just looking for ideas. You're right--I'm a long term investor rather than a trader, but always interested in learning.

That's was not my intent. My main query regards strategies to generate small percentage returns from larger account. Ignore time period I originally posted.

Maybe I should have rephrased it. I was just thinking about a small percentage on a trade using a large account. Disregard the time period.

Is there a preferred strategy or setup to make a small percentage from a large account? If someone had $500,000 or $1,000,000, generating 1% every couple weeks or even a month is real money. Obviously buying puts or calls is a high risk/reward approach. Cash-secured put can be like picking...

Thanks all for taking the time to reply. I'm learning it is much more complex that many instructional videos appear.

I understand the basics of calendar spreads--i.e short the near-term option/buy the longer dated option. However, I have two questions regarding constructing a trade? Say XYZ is trading at $50 and you have a neutral outlook. 1. How do you decide whether to use calls or puts? 2. How decide on...

1. Is it possible/allowed to have a collar with same strike price? Occasionally, I've noticed some options with calls being more expensive than puts. Example: XYZ trading at 50.35; Buy 100 shares, Buy 1 Put, and Sell 1 covered call; earn .50 credit. XYZ 50 Put 1.50 XYX 50 Call 2.00 If...

Great responses...I guess my main question is: (Assuming we're talking about stable companies) Isn't it all a wash if you reinvest the dividends? I had 50 shares @ $50; now I have 51 shares @$49 after a $1 dividend reinvestment. Same acct value. What am I gaining here? (other than a tax on...

I'm generally an index investor, but have also have an interest in dividend stocks for their perceived stability (i.e. PG, SO, KO, etc). I feel like it's a wash when you reinvest the dividends since your account value stays the same as you have slightly more shares trading at a slightly lower...