Any thoughts on the viability of http://radioactive.websitewizard.com/sketch.html ?
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Radioactive Trading
- Thread starter dqtmg2
- Start date
"Enter the Married Put Strategy, the only method that bets on the sure thing"
So, you'd like to buy calls?
There's no difference between the "married put" and buying a simple call.
So, you'd like to buy calls?
There's no difference between the "married put" and buying a simple call.
His strategy is more than married puts- he combines them with selling calls or other strategies, just substituting the married put for the long call part of the spread. The big downside I see is a married put requires a lot more initial cost than a long call, which has a big effect on return %.
Quote from dqtmg2:
His strategy is more than married puts- he combines them with selling calls or other strategies, just substituting the married put for the long call part of the spread. The big downside I see is a married put requires a lot more initial cost than a long call, which has a big effect on return %.
You can substitute all you want it doesn't make any difference at all. Married put=long call! Unless you hold the stock for the long term or some other purpose, trading a married put is inferior to a simple call, assuming no arbitrage of course. It's double the commissions, double the slippage and more capital intensive.
For a longer discussion which (of course) devolved into a flame war...
http://www.elitetrader.com/vb/showthread.php?s=&threadid=75081&highlight=married
http://www.elitetrader.com/vb/showthread.php?s=&threadid=75081&highlight=married