I suggest you check with your broker. In a lower level "one" acount you can use the credit to sell an additional contract and/or to reduce your...
You seem to assume any use of leverage is excessive. The "context' that I've used to describe leverage as "excessive" is.... if you are unable to...
Whether you can use the put or call premium, depends on the type account you are trading in. In a level 3 type account, the credit doesn't do...
The premium does not help you in a level 3 type account, because the margin requirement will increase by the amount of the credit. But in a...
You example is ridiculous, because you are assuming the put seller is at max margin, to the extent that if the account value drops one penny, they...
I will restate this one more time using 2 different situations: Example one.... , You have an IRA cash account, and want to sell cash secured...
I have been using the credit for over 20 years at Schwab. Both for selling puts and for doing buy/writes. However, it is possible that if you...
IC's can hurt you on "both" sides. The only thing more risky than a leveraged single sided credit spread,... is a double sided IC spread. I...
I suggest using it to sell an additional contract. For example, if you need $2,000 to sell a contract, but only have $1,600 in your account, but...
You don't believe I use the 2 and/or 5 year chart to select my strike prices? I use fundamental analysis to select my stocks, and the 2 - 5 year...
<<< The selloff in 2009 was slow and vol continued to come in. Normally vol and cash are inverse. But it was still like 25% In those kinds of...
Diaoptions, don't be so nit picky. There was a spike in volatility. Whether you call it the VIX the VOX or a BOX. Traders could not close...
I'll assume that type of useful and brilliant analysis is the reason you don't share your trades.:) About 95% of my trades tech analysis and...
Sold puts on $15 TITN for Dec. Credit $0.60 Annualized % return......... 14% otm safety cushion...25% BE..... $14.40 Good company going...
So you are saying we are over due? We have had numerous severe market events since then. Remember the week the S+P downgraded the USA debt...
All traders have losses..... eventually. But not all traders are at risk of having their account wiped out by some unpredictable market event....
Remember the crash of 1987? The market opened the day down about 20% on monday? Not everyone had time or ability to close on friday, as the...
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