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LEAP put spreads

Not necessarily. Thats only if you hold to expiration. If you buy a call and close it out the next day, you only lose whatever the theta is. If volatility spikes then you may make money even if the stock goes nowhere or even slightly down. If you buy an option at parity then you do not need the...

this topic has been discussed in detail before. do a search or just scroll down and you should find your answer

I don't think you answered the question of how a stock gaps up or down after earnings or some other random event. This has nothing to do with the 401k. Its all fundamentals. I don't think you have full comprehension of what a ponzi scheme is. When you pay into a ponzi scheme you add no value...

"It really just depends how you want to use options, how you view the profit on some strategies." Thats a quote that I wrote. Some people view covered calls or writing puts as income instead of profit. I was just giving general conservative strategies to produce income. Yes, income is profit...

Covered calls may be OK for his conservative funds. But ONLY if he is able and willing to gain learn a lot about them. With covered calls, if you want them for income or as a conservative strategy, I don't like writing far month calls. I like to always stay in the front month. This way the theta...

The "Stop Trading" segment airs during market hours.

lol. That would be cool. Put a tooth under your pillow and you get protection for some of your long positions.

1. Well, it hasn't been discussed where he will cut his losses. If he does it too soon then he will miss out on trades that may eventually become winners. If he cuts losses too late he may not be saving much money. It is a tricky thing to do and is not a science. 2. Time decay is his friend...

The odds may seem with you but they are not. Say you can improve that win/loss ratio from 75/25 to 90/10 using your technical analysis. This would be extremely difficult but lets say hypothetically you could do it. Say you would still win the $.45 90% of the time and lose $4.50 10% of the time...

i dont know. You might be right. However, expectations for goldman are high, compared to expectations for nearly every other company are low imo. So they really have to blow the doors out to get a jump in the stock price. Goldman beats 90% of the time and the stock moves on average just 10 basis...

1. No, selling vertical spreads is not a viable way to produce monthly income of any amount, much less 5-10%. If you could produce an 8-10 or even 5 percent return a MONTH using vertical spreads over the long term, then you'd easily be the richest person ever to live in a couple of decades...

why is this in the trading and not the journal section, again?

Revenues are down for nearly every company except discount stores y/y. Your comparing things at the very beginning of the recession to the end. Yes, its trading at 2007 levels but the market is trading at 1999 levels.

No, a vertical spread would beat long calls. It is a much better strategy in this situation. The op thought spy was going to 112.5 but not much higher, which I tend to believe was his thought since he did not ask which strategy would be most profitable if spy reaches 120 or 130. If this is the...

That is exactly what I was going to post. I would just add that if you are unsure when it will go to 1125, you might instead want to do a vertical. Buy a mar call and fund it with another mar call instead of nov. Because if spy goes to 1125 quickly, and goes past the front month call that you...

Yes. This is a topic that I don't often find, but is logical. Look at long term charts of a 3X leveraged bear and bull etf and you'll find that this strategy would have made some serious money. Usually either the bear or bull gets hammered and the other one kind of just stays flat. However...

Because if spy goes sideways or lower you will lose everything. If you buy a deep in the money leap to thwart this problem, then you aren't really freeing up much cash, you've got theta working against you, volatility could go lower further reducing leap value, and if spy goes down hard you will...

Any long term strategy with 3X or even 2X leveraged etfs on the long side is a recipe for disastor. You just cannot over look the price decay. Do some research. If you want to hold this for a couple of months, you could get away with it I suppose. But, if you are a long term investor, and I...

whats your timeframe? When you say you can only buy one stock, do you have to hold it forever or can you just sell it tomorrow and buy another one?