This is my gut. What are you talking about!?


Okay, sold 1 at .50, bought 2 at 1.75.


Where do you get 1.25 at 7.50 at Feb exp.? That doesn't seem right. I expect more. I've never even tried any of my software to do that kind of thing, and yet my "gut" tells me I can get more.


I hope it goes to 0!


Besides, what you described sounds like a pretty cheap way to buy 7.50's no?


This is not "obfuscation." Okay, maybe it is, since I'm not sure what "obfuscation" even means! I've never heard that word employed, except as a debating tactic among halfwits. For instance, you say "You crashed my car." I say "You ran me off a cliff." You say "That's obfuscation - you were driving." I say "That's obfuscation..." and so on. Please don't waste my time with that, or at least be more clear.


I would presumably be a seller of any call assignment - if it happened tomorrow morning under expected conditions - I'm bearish. You, on the other hand, would be long the stock. So what?


You said,


"That spread will collapse if we go up, sideways."


Yes, but not as fast as the long puts alone, obviously. And certainly not as fast as short stock at 10, which is my other alternative. And if we go down AND imvol increases, my spread expands, no?


It is also possible for the spread to expand in other ways that become significant, given that the capital and brainpower tied up, and the commissions, are sufficiently low - given that size is large relative to cost and worry.


Anyway, why push me to articulate a first-instinct trade into an elaborate explanation, and then accuse me of obfuscation for elaborating? What am I obfuscating? Does obfuscate mean conceal? What am I concealing?


The reason I responded to your silliness is because I thought you might actually be exhibiting some well-founded stress about your silly option-writing habit. But I guess not! Options USUALLY expire worthless. You will usually make money selling them.


If it goes to zero "so what?" So then your trade sucked, and you will have to write 15 more and have them expire worthless just to get even, not to mention your trouble! What is this "so what?" You're the one telling me my spread amount is insignificant, and I'm telling you that if your loss is insiginificant, your profit is even more insignificant! It's all just playing!


I like the fact that I can make money if it rises at it expires and volatility expands, for instance. Meaning, I like being long the 7.50 puts when you are trying to take your profits, you give me a bid WHICH CAN MAKE ALL THE DIFFERENCE!


No matter what happens, there is sure to be bids in those April 7.50's, giving me better than fair value. Enjoy.


eLROY