I'm obviously NOT talking about or to responsible traders.
The danger you are in is remote. Extremely unlikely to occur. It's more of a "what if" type issue. That being, "what if" there was a sudden...
<<< if their risk management team doesn't catch it.. and the option gets assigned... its on them to make up the difference for the money that you...
Don't fall asleep just yet. You did not ask the correct question. Ask them the followng: If there is a market event friday, and the company...
It really upsets cdcaveman that I dare to merely warn investors of the risks of being on excessive leverage via credit spreads,... particularly...
<<< if you do not close the trade and one is itm and one is otm .. your broker will step in and not allow the rights and obligations to be out of...
What benchmark are you using for your sharpe analysis?
While I agree it is possible to potentially earn those kinds of % returns via option strategies, shouldn't you also be discussing the...
If a stock drops slightly below your lower strike, and there is some theta left in the trade, it still pays to close the trade. Better to only...
Your margin requirement was only $500 per contract. But you leveraged the other $59,500 for the AAPL spread trade. Imagine if you sold more than...
I consider the "larger margin requirement" for selling puts, vs spreads as a positive. A good thing. That's what keeps naked put sellers from...
I find it much easier to evaluate, and thus have a higher "probability" of being profitable,... to determine a stocks potential downside support...
I can see why the IC is such a popular strategy. But I like the theory behind an IC, more than it's potential reality. If I want a double...
<<< The "catch" is you've now drawn 2 lines in the sand, so there's two ways to lose instead of one. And one of those Credit Spreads in a...
<<< I would speculate everyone's appetite for risk is different >>> I would speculate that everyones appetite for "greed" is different.
If my JOY put dropped 20% from where it was trading, at the time I initiated the trade, there wouild still be joy with JOY, given my otm safety...
Couldn't you say that for any strategy, whether it be an IC, credit spread, or naked put? That being, only put in half and then add more later if...
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