How is this strategy possibly sustainable?

[wxytrader]

It's basically a 25 wide put credit spread, turning into a Poor mans covered call.

What's the point of buying the long put because the spread is so wide it's basically useless. Also the short put is well within range of getting tagged every week for a loss.

Also, when switching to the PMCC, the long call is only $3 ITM so that is at risk of expiring worthless by Dec at a cost of -24k. Am I missing something here?

 

[TrAndy2022]

It's basically a 25 wide put credit spread, turning into a Poor mans covered call.

What's the point of buying the long put because the spread is so wide it's basically useless. Also the short put is well within range of getting tagged every week for a loss.

Also, when switching to the PMCC, the long call is only $3 ITM so that is at risk of expiring worthless by Dec at a cost of -24k. Am I missing something here?

Why do you watch so many youtubers, they are all poor and they cannot make enough money from trading. So I would not listen to their advice. You will get to nowhere listening to them and analyze their garbage.

 

[maxinger]

It's basically a 25 wide put credit spread, turning into a Poor mans covered call.

What's the point of buying the long put because the spread is so wide it's basically useless. Also the short put is well within range of getting tagged every week for a loss.

Also, when switching to the PMCC, the long call is only $3 ITM so that is at risk of expiring worthless by Dec at a cost of -24k. Am I missing something here?

Stop hunting for worthless useless trading-related YouTube videos!!!

Spend time developing your own holy grail!

But watching porn is ok.

 

[wxytrader]

I already came to the conclusion (a long time ago) that buying or selling options without holding or being able to hold the underlying is putting yourself at a huge disadvantage. Any strategy where you will be forced to realize losses is flawed. If they worked then everyone would have a (2008) Lambo.

 

[Quanto]

I already came to the conclusion (a long time ago) that buying or selling options without holding or being able to hold the underlying is putting yourself at a huge disadvantage. Any strategy where you will be forced to realize losses is flawed.

You surely mean the Early Assigment Risk of the American-style options.
FYI: this is for short options only, not for long options. So, you should update your above statement, IMO.

And: with long options you risk the option premium only, not more. Same with the underlying stock (ie. you risk the initial price of the long stock, not more), but since options do cost just a fraction of the stock, this then means risking x-fold more with the stock... Do the maths...

The ideal situation for me would be: European-style options trading with cash-settlement only

 

[Quanto]

@wxytrader, there's an even more frightening nightmare horror possible:
https://www.investopedia.com/terms/c/conc.asp

American Style digital options automatically exercise the moment they get in the money, unlike American style standard options.

fugit!

 

[wxytrader]

You surely mean the Early Assigment Risk of the American-style options.
FYI: this is for short options only, not for long options. So, you should update your above statement, IMO.

And: with long options you risk the option premium only, not more. Same with the underlying stock (ie. you risk the initial price of the long stock, not more), but since options do cost just a fraction of the stock, this then means risking x-fold more with the stock... Do the maths...

The ideal situation for me would be: European-style options trading with cash-settlement only

No, my statement holds true.

 

[Quanto]

Any strategy where you will be forced to realize losses is flawed.

No, my statement holds true.

Hmm. I don't get it. You better should elaborate when you make such crypto-like claims in a public discussion forum.

So then you can only mean "sitting out" a losing trade.
This is of course possible only with stocks as stocks don't have any expiration date, yes.

 

[wxytrader]

Hmm. I don't get it. You better should elaborate when you make such crypto-like claims in a public discussion forum.

So then you can only mean "sitting out" a losing trade.
This is of course possible only with stocks as stocks don't have any expiration date, yes.

Yes that's my point. If you can't take on the shares then you are forced to take a realized loss.

 

[taowave]

You came to the wrong conclusion.....

Forced to realize losses?

How long have you been trading options??

I already came to the conclusion (a long time ago) that buying or selling options without holding or being able to hold the underlying is putting yourself at a huge disadvantage. Any strategy where you will be forced to realize losses is flawed. If they worked then everyone would have a (2008) Lambo.