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Trolling on his own thread... LOL

Would be fair comment Dan, 'cept I note that some of your comments in other threads are decidedly trollish. Perhaps hold yourself to the standard you ask of others?

A view on vol and range will probably suffice.

I like to ask a different question first: Can you make a living using straight directional trades on the underlying (or at least be profitable long term if not making a living)? With a fair few caveats, the answer is yes. The question then becomes: Do options give the trader any overall...

I only pay lip service, and never lend cash :D :D :D

Aussies don't speak patois, they speak Strine, which includes much British idiom as well as their own colloquial enrichments. As for me, I have lived in several countries and borrow from each. Currently NZ.... sweet as bro! ;-)

Danshirley, I'm kind of curious why you would do that here and slag off others who do it in your thread. "Socratic" doesn't really come to mind here.

Dan Shirley, WTF? You seem to be arguing that I've done some hatchet job on CCs. As I pointed out before you have misinterpreted my intent. I don't disagree with anything you've said and nothing you have said contradicts anything I've said. To repeat myself (nearly to the point of ad...

It is an example in real time that sans a being able to see into the future, shows an equity curve in progress. The opportunity is there for anyone to discredit my conclusions with real time numbers. Once again I point out that I like the strategy and use it in certain circumstances...

danshirley You misunderstand the intent. The sim was to show what CC does over time across a range of circumstances, not to show it is a loser. More specifically, it was to counter the claim that you can make 4-8% profit per month by systematically writing CCs. I stated that quite...

I ran a sim on systematic CC writing for six months. By no means a perfect example, nor the way everyone would do it, but I believe the conclusions are pertinent. http://optionsthenakedtruth.blogspot.co.nz/search/label/the%20covered%20call%20project

They're Greek

I prefer....

Just a point, but there is no law that says just because leverage is available, that one must use it. If sensible money management principles are used (eg 2% fixed fractional), it will save one from getting into too much trouble from leverage.

If you're just trying to obtain linear leverage, options are an inefficient way of doing so. The best use of options is to utilize the non linear aspects of them; volatility, gamma, +ve theta if you want, etc. IOW define risks and rewards via those pesky Greeks.

Get a margin account and you're only coughing up 30k. I can't see any advantage of such DITM calls... unless you think there is a probability of a crash in the stock price. You can avoid time decay with a synthetic long, but probably not what OP had in mind.

Re IV: The vertical spread does much to tame vega, but vol can still throw in a curve ball from time to time. Re credit v debit spread expiring worthless: It depends on what you are trying to do, the strikes you choose and direction the underlying takes.... not to mention bid/ask spreads...

What are the theta, gamma and vega of these? :p

The ignored factor --> contest risk. A vertical spread that matches the underlying in terms of delta will be a LOT more costly in terms of commissions and bid/ask spread. Plus delta will go and change on you as time goes by, vols change and underlying moves.

Might be stepping in front of a freight train however. :eek: Who knows what Obarmynomics will turn up in the time frame? Another million billion trillion in stimulus for e.g.? Scalper007, The "best" put option or "best" strategy can only be determined after the event. The best you can...