My option trades

<<< BTW: Arrogance and condescention are not substitutions for knowledge. >>>

That's right. And the sooner you understand that, the safer your account will be.
Because if you are using 100% of your funds for a spread strategy, with no cash cushion, and without regard to the price of those strikes, that arrogance, disrespect for the market, and smug attitute toward those trying to warn you, is truely a reflection of your lack of knowledge of the risk you are engaging in.
Frankly, given your poor attitute, insulting remarks, and lack of appreciation for the time and discussion I've offered,... I really see no point in repeating myself.

You remind me of the gambler who takes 100% of his life savings to the casino, with the attitute of.....this is a great place to work my double-down "martingale" gambling strategy, because the most I can possibly lose is my life savings.
And since it's all cash, there is no additional margin risk.
That cash is the maximum that can be lost..
Not one penny more!
I agree. You are both correct.
 
On a lighter note, toward the end of the day yesterday I bought a Sept 27 put on GMCR for $5.38.

The stock was up about 30% yesterday in spite of lower guidance, questionable management, questionable accounting practices and a significant patent set to expire this fall, likely squeezing margins even more. No free cash flow yet a commitment by management to buy back $500 million in stock over the next two years.

As Atticus would say, dinner at Red Lobster is on the line. :)
 
<<< Please let me know so I can tell my broker because he is grossly underestimating the risk on my account. >>>

Your broker is fully aware of the potential risk of a 100% spread portfolio, which is 100% invested, with no cash reserves, with an indifference to the price of those strikes, and does not benefit from any time decay for most of the duration of the contract.
 
Quote from Put_Master:

<<< The answer to the repeated question... any data any reference... would appear to be no.... which makes your post nothing but hot air. >>>

The answer to most of your questions are.... "it's common sense".
Do you seriously believe most spread traders only use about 1/3 of their cash, setting aside 2/3 just in case they want to buy most or all of their stocks?
If so, then whatever their annualized % return is on their spread trades, they should then reduce their actual "year end expectations" by about 2/3, since they are only using about 1/3 of their cash.
All those successful 15% annualized returns through the year, are NOT going to result in a 15% annualized return at year end, if you are only using 1/3 or 1/2 your cash during the year.
Do you seriously believe most spread traders try to avoid that situation, by only doing spreads on low priced or single digit stocks?
You sure don't.
Common sense is my "reference point".
Just because what i say does not apply to 100% of the spread traders, doesn't mean it's probably not true for the majority.
More...
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Are you Falconview using alias ??

:D
cheers
john
 
Quote from Appleseed:

Are you Falconview using alias ??
More...

I don't think so....... Put_Master's IQ is 3x that of Falconview's but still well below that of a moderately retarded person.

Quote from HurricaneUS:

whatever happened to the thread originator?
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He's long gone ....... He tried to call the top on AAPL three months ago (or was it six months ago?), and we all know what the results of calling the top can be.


:)
 
Quote from Appleseed:

----------------------------------------------------------------------------------
Are you Falconview using alias ??
:D
cheers
john
More...
Just spreading my "seeds" of caution, to an investor who has a tendency to initiate spreads when the stock is trading near all time highs,... to the potential risk of a 100% spread portfolio, which is 100% invested, with no cash reserves, with an "indifference" to how high the price of those strikes are, 6 - 7 month long contracts that go through 2 earning cycles, and does not benefit from any time decay for most of the duration of the contract.

Remember the "fllash crash"?
Remember the market dropping 300 - 500 points almost daily for weeks, when the S+P downgraded the USA debt?
Remember the prolonged market drop from late 2007 into 2009?
Remember the spike in VIX from 10 to 50?

Investors should invest assuming there will be other "memorable" moments in the future.
Thus, it's wise to always have a back up plan "B" to fall back on.
Simply saying I'll accept a potentially massive or total loss of my account value, because I can't buy 80 - 90% of my spreads,.... is not a sensible plan "B".
All I'm doing is trying to point that out.
But I'm quickly running out of seeds.
 
Quote from diaoptions:

Put_Master's IQ is 3x that of Falconview's but still well below that of a moderately retarded person.
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I dunno. He strikes me as being smarter than you.
 
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