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Thank you all for the great replies. My thinking was that I should/could buy 100 shares at $1.25 for $125, exercise the $3.00 put to sell for $300 and pocket the $175 difference. I like the other possibilities which is what I was asking for. Thanks again.

Appreciate any reply to this scenario pending. This is generalized but applies to my situation. XYZ stock price was $4.50. Strong Sell recommendation. I buy a $3.00 Put. One contract. Stock price falls to $1.25. Low volume and zero bids for Puts at the $1.25 price point. Should I enter a...

I'm not looking to start a pissing contest. I came here to ask questions when I can't find a clear answer elsewhere.

From my reading and 4 months of experience thus far, I know to consider these criteria when selecting a stock or EFT for activity: High open interest High volume High IV% Narrow Bid/Ask Delta +/- 5% of 20% 4% away from current underlying price And for those using Tastyworks platform...

When looking at a potential trade, some spreads or ICs have either positive or negative theta. Do i understand it correctly that a negative theta would indicate that the option does not deteriorate over time or is time decay adverse? Thanks.

No, not a retirement account - individual margin account.

Tracking activity in Quicken for trades. There appears to be no way to enter daily pricing, volume, open/close for options in Quicken other than manual entry. A bit problematic if one holds several dozen option legs. Does anyone use anything other than your broker's web site to track your...

When one sells calls or puts - 'being short'. Understand short and long. Volatility is relative, long or short is not relative. You either are or you are not either long or short.

Thanks Tom

While this sounds good, I have yet to grasp all the terminology and implications. I'll read up more on 'mean reversion' and how one becomes 'short volatility'.

POP changes based on strike prices selected, width of strike prices and expiration dates. Number of contracts seems to not influence POP or P50.

POP is probability of total (max) profit and P50 is probability of realizing a 50% profit of max profit.

Terminology may be off. Using Tasty Trade calculators to get POP, IV% and P50. Yes, the stock price, not strike price. Haven't had my second cup of coffee yet. Where might I find Realised Volume? I have several sites that I'm subscribed to - Barcharts.com, Stock Screener, Stock Charts, Yahoo...

:thumbsup:. So, going forward, perhaps it's better to consider IV% closer to 50-60% rather than the 25-30% I have thus far considered. Thanks for a right to the point reply.

In my readings and learning about options, particularly Iron Condor contracts, some videos (can I mention a broker? - TastyTrade) notes that ideally one should consider options that have high Open Interest, High Volume (liquidity) and high IV%. This has me confused. In a short IC, one wants the...

Thank you. Many articles speak only of 'the spread'. I wasn't sure if this meant the space between bought put and sold put on upper leg of IC and/or Sold call and bought call on lower leg of IC - or - the gap between the middle of the strikes. e.g.; Buy 9.00 Put Sell 9.50 Put Sell 12.50 Call...

You have been so helpful. I appreciate it all. So, all other things being equal, I'll get the short IC for $246 credit/$354 max risk. Exit strategy is to peel away at 50% max profit or $123. It's a wide spread ($10) and I'll hope for the best. Thanks for the exit before expiration hint.

Just to clarify for my own knowledge. I'm looking at a SPY Iron Condor with a $26 spread (Sold call / sold put middle legs), should I then expect about $8 credit back? The credit on this proposed IC is $173 (max risk $427). Is this $26 spread supposed to credit back $8 or is it $80? $8 seems...

Thank you for your reply. I am concerned about the total dollar cost associated with exercising. This EFT is just ever so slightly under its 52 week high of $168. 52 week range is $131-168. Being an IC, I naturally want this to settle between the sold put and call. In this case between $162.50...

Thank you for your reply. The underlying is $167 and DTE is 26 days but, most importantly, this trade has not been executed. I'm just getting advice regarding whether it's wise to do so. This IC has some decent liquidity but not exceptional. Given the POP at 52%, P50 at 64% Delta +5.00, it looks...