Good points MTE... in reality, what are the odds that it would expire exactly at $35. Every option method, sans reversals/conversions, will have...
Point taken faith... However, there are a few ways to manage the IV reduction. I could transact with 30 - 90 day expiration dates or I could...
The loss in IV cuts both ways. Both the long positions and the short positions would lose IV. Although the reduction in IV would hurt the long...
USG is due to report on tomorrow @ 11:00 AM Est. The following represents the data as of 4:00 PM 1/28/08: Market price = $33.25 Transactions...
Thanks for the repy faith; however, I disagree with your statement. Because of the long positions in the backspreads, it would be quite...
Has anyone considered combining a call backspread and a put backspread with a long butterfly. It would be best to structure these spreads with a...
Thanks for the nudge robbie380; I have tried this strategy & do intend on continually testing and improving it. Becasue of my desire to improve...
I suppose that's in effect a synthetic CC approach... seems reasonable if it's a stock you believe in... Walt
Thanks scriabinop... hopefully, I not like the Trump casinos, they're taking a hammering right now I understand. Walt
Good point mihalich... as a matter of fact, I've been testing the selling of straddles just in-the-money, with a one month expiration. However,...
sorry to hear that tman.... but I believe that writing calls against futures indices or mega cap stocks after an upward spike of 10%+ is the...
Let's remember the edge that selling a call ATM after a big upswing can provide. The Theta and Vega should both work in my favor. Also, ATM has...
I'm really not trying to catch the top, in as much as I'm utilzing the martingale to protect the fact that I probably did not catch the top....
Hi Atticus, I would structure my transaction differently. I would sell ATM or even just ITM after a big upswing & it appears that the stock or...
Good point profitTakgFool... However, if only once since 1998 would we lose, then that helps to validate the potential power of this system....
sorry... I misspelled the term. This the definition of a "red herring"... A red herring is a metaphor for a diversion or distraction from an...
I would be more prone to selling a $46 call for $1.50 with a Feb expir. Although it's currently trading at $1.30, I would set my limit order and...
I fully expect the index or stock to go higher; however, I don't expect it to go 30% higher in a 30 - 60 day period. Walt
FullyArticulate, You're absolutely correct about MO. However, that's the exception, not the rule. Even with such an occurence as MO, my loss...
XOM spot was at $84.58
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