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Hi RallyMode, No disrespect taken, I liked your example but you had me buy the wrong 5 point call spread. The example should have had me buy the 1345/1350 call spread. This is SUPER important, because I would rather own the 1340/1350 call spread 1 time rather than 2 of the 1345/1350...

RallyMode, I have to disagree with you. Selling a 10 point spread for $2 is inferior to selling twice as many 5 point spreads for $1. You are giving up the value of the butterfly. If a MM is willing to pay $1 for a 5 point spread and the butterfly is worth at least .05 he will be just as...

Rallymode, You posted the following: Before i open my 5-point spreads i always make an attempt at grabbing the 10 pointer if i can get it for twice the credit. Sometimes, options get slightly out of balance and you can manage to get such a fill but most of the times MM's won't give up the...

Rallymode, The reason your strategy (buy stock & buy deep in the money puts) looks favorable to you is that you are missing a piece of the puzzle. The missing piece is the amount of money necessary to finance the position. Explanation: If you bought 100 shares at 129.75 and 1 put for...

The position you are talking about, buying SPY stock & buying In the Money puts, can be looked at as a "synthetic call". The position you are describing is the same EXACT thing as buying the 133 Call. look at the P&L profit potential of your spread and the P&L profit of owning the 133...