Show me an example of selling premium where the risk reward isn't atrocious.
Actually imo 0-3 DTE are the least risky if you know how to manage them. The important part is not oversizing your positions. I eeked out about...
Didn't take long for the house "pro" to make an appearance. You are missing my point entirely because you were so eager to pounce. We all...
I have been looking at different option strategies, but none of them seem to have a reasonable chance of making any consistent profits once you...
Aug4 18 ---> 28 DTE ---> .32 Aug4 19 ---> 28 DTE ---> .25 -comparing price to the current aug4 19 strike ($3 otm) with the same expiry. With a...
If my math is correct on this example with BITO: 1 aug4 $18 call contract is .32 1 sep29 $18 call contract is .80 if price drops to $15 by...
The fed announcement was a big nothing burger. Typically I ignore all news/noise because it correlates with the EW. I was allowing for a move,...
Must be just a coincidence but I'm not convinced.
I sold an IWM iron condor with the short strikes at 190/184 while it was trading at 187 and then the price kerplunked. I let the long put run for...
Yeah I was thinking the only margin exposure would be the spread risk ..but apparently there will be a % obligation on the underlying committment.
Update. So been reading the literature at TD: Uncovered naked calls - 100% of premium LESS any otm amount PLUS subject to minimum % requirement...
Ya but it's a spread so really 100 short calls @ 416, and 100 long call options @ 417 is a $10,000 trade since that's the maximum risk, so that is...
[MEDIA] This video answered all my questions on what happens when you don't have the funds, or the shares to cover an assigment. At the end he...
Yes I totally agree. My broker doesn't allow naked calls, but does allow shorting stocks. That never made sense to me because what's the...
That's what I thought too, since you don't have the shares your account will go short triggering a margin call, but simultaneously the broker will...
Exactly! It doesn't matter how high the stock price goes, the risk is defined at 1k. There should be no requirement to cover the cost of the...
I am their client. I take the loss, the broker gets the fees, and the call buyer gets the profits. I have level 3 or whatever because I have a...
Apparently they do facilitate the trade: (Short call option) 1. You do not own the underlying stock If you do not own the underlying stock,...
Well then what's the point of entering into a spread at all? If I had the shares, or the money to buy the shares then I would just enter into a...
ABC short 100 contracts @ 4.60 strike ABC long 100 contracts @ 4.70 strike So my maximum risk is 0.10 * 100 * 100 = 1000 How would the...
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