Extending a CoveredCall to a Spread possible?

[earth_imperator]

By weird adjustment I meant the "arsenal" you listed for your cc adjustment.

Of course you can turn it into spreads if that's what you want... As 2rosy stated above, you basically have a short put and you can easily spread it.
Just buy an otm put and you have a collar spread, which is like a bull put spread payoff.
As I said, this stuff has been covered plenty here and in books.

Sorry to say this, but you seem not have understood the problem. Read my reply to @2rosy.
Imagine you already have a CoveredCall in your porfolio. Then the question is: can you extend it to a spread?
I hope it's now much clearer.

 

[cesfx]

Just FYI:
I'm bound to the possibilities and limitations of a standard CashAcct with option permission, incl. shorting (as CoveredCall and CashSecuredPut).
CashAcct might look like a little bit limited compared to MarginAcct, but it's my own choice: I just want to do it in a CashAcct, then of course also make only those trades that are possible in a CashAcct. That's OK for me.

Didn't you have another thread where it was already explained that you can trade most strategies in a cash account, as long as you have the cash? And for many debit strategies you don't really need deep pockets.
Maybe you need the collateral for assignment, but there are cash settled instruments, and low dollar value ETF and stocks.

Sorry to say this, but you seem not have understood the problem. Read my reply to @2rosy.
Imagine you already have a CoveredCall in your porfolio. Then the question is: can you extend it to a spread?
I hope it's now much clearer.

Wow man...
Again for the last time: add a long otm Put, and you are in a Collar Spread (long stock, short call which is your covered call + long put), the Collar is a spread that has the same payoff of a Bull Put Spread (sell put, buy further otm put).

 

[earth_imperator]

Didn't you have another thread where it was already explained that you can trade most strategies in a cash account, as long as you have the cash? And for many debit strategies you don't really need deep pockets.
Maybe you need the collateral for assignment, but there are cash settled instruments, and low dollar value ETF and stocks.


Wow man...
Again for the last time: add a buy otm Put, and you are in a Collar Spread (long stock, short call which is your covered call + long put), the Collar is a spread that has the same payoff of a Bull Put Spread (sell put, buy further otm put).

@cesfx, you are really just a stubborn dumb idiot! You can not think deep, you lack that capacity. Hot Air Talker! Just piss off! Put to Ignore list.

 

[BlueWaterSailor]

I hereby am challenging you: just show me/us the answer to this question in the topic.

[sigh] You really, really have no clue of what you're talking about... but worse than that, you don't have the humility or the smarts to listen to good advice when it's given to you. Instead, you keep making all sorts of arrogant assertions and self-assured but meaningless pronouncements to try and hide that ignorance. That's not really going over too well.

You are of course right, and I too know this relation, ie. LS+SC=SP. and from there on one easily can form a spread using a LongPut etc.

No, you clearly don't "know this relation". Otherwise, you'd know there's no such thing as "extending a covered call to a spread"... you don't understand how ridiculous of a statement that is, do you?

Here's a clue for you: when you change the type of trade, you change what it does. There's no such thing as "extending" anything, so your "challenge" is meaningless; you're asking "how do I extend a piece of bread by drilling into a carburetor?"

This is of course subjective or risk-profile-dependent, for me it's "better" b/c it simply is a spread Ie. loss side capped.

...yeah, perfect example here. A covered call and a vertical represent two different views on the underlying, and have different margin requirements and risk profiles. One is not "better" than the other in the same way that a screwdriver is not "better" than a hammer; they're different tools for different applications.

I thought I'd give you another chance to learn and become smarter, but I see that was a lost hope. Oh, well. Good luck with your "tables", "challenges", and all that. Peace out.

 

[cesfx]

Then if you like, add a Bear Call (sell call + buy call farther otm) and you have an Iron Condor...

 

[cesfx]

You are a really just a stubborn dumb idiot! Just piss off! Put to Ignore list.

Please do that, thank you. I wasted enough time on imbecilles today.
I will put you on ingore too as you are waste of oxygen and data.

 

[BlueWaterSailor]

Again for the last time: add a buy otm Put, and you are in a Collar Spread (long stock, short call which is your covered call + long put), the Collar is a spread that has the same payoff of a Bull Put Spread (sell put, buy further otm put).

@cesfx - at this point, I think we're talking to a brick wall. He wants to hear what he wants to hear (based on his "ideas" of how options work), and he's unable to hear anything else. This was my second try at helping him, and I'm done. Permanently.

 

[earth_imperator]

@BlueWaterSailor, ignoring you too. Bye bye.

 

[earth_imperator]

As everybody could see, I've been attacked by these 2 "scums" above. It was a coordinated attack! I guess they were put on me b/c of my pro-Russia political views...

 

[cesfx]

@cesfx - at this point, I think we're talking to a brick wall. He wants to hear what he wants to hear (based on his "ideas" of how options work), and he's unable to hear anything else. This was my second try at helping him, and I'm done. Permanently.

You are correct, and we are talking basics here.

You actually smelled it quickly, in his thread with short put "tic tac toe" card scenarios.

I should know better, when someone ask questions that anyone could google, whilst showing off as knowledgeable giving advice, something is way off.