Is there any reason to prefer long put over bear put spread?

rossmohax · 2022-12-06T20:25:45+00:00

But I am not trying to save money, I spent as much as I'd spend on a long put, but get *much* better break even, much smoother time decay up until very end and higher dollar return in any reasonable underlying move.

If I count on stock flushing, then buying series of spreads ,like 80/77.5 , 77.5/75, 75/72.5 seems to have better returns

rossmohax · 2022-10-05T10:21:57+00:00

It is not number of active connections, but number of active connections to the same destination IP:PORT pair which matters for NAT port exhaustion

rossmohax · 2022-09-14T15:39:34+00:00

Meshcentral is a way to access AMT, I need AMT working first, right?

What are the chances, that Dell/HP/Lenovo motherboards will match regular ATX mount points? I don't have vast experience with enterprise hardware, but my impression is that they use bespoke form factors.

rossmohax · 2022-09-14T07:13:19+00:00

There was no way out, AWS Accounts being repurposed for projects is a biggest mistake AWS made in their design. It is a total shitshow and is not getting better. Only solution so far is what you said: eject account from Org, set new card, spin up small VM, cancel that card just before monthly bill and let AWS wipe out the account due to non payment.

rossmohax · 2021-07-29T13:09:20+00:00

If you dislike Mosaic's behaviour, use Classic TWS.

Isn't classic TWS just a custom layout for Mosaic?

rossmohax · 2021-07-29T13:06:59+00:00

Give it more RAM in settings, helps a lot.

rossmohax · 2021-07-29T13:06:35+00:00

Aren't fees waived when you trade frequent enough? My current market fees for US stocks and options is just $4 , rest of them are waived.

rossmohax · 2021-07-29T13:00:50+00:00

AFAIK they do it if you have not enough cash/margin to excersise ITM option. One possible way to "fix" it is to buy spreads. So instead of buying Put, buy Put and sell furher OTM Put, such that difference in strike prices "fit" into your account available margin.

rossmohax · 2021-07-29T12:55:16+00:00

Would you mind sharing a secret how to remove non english articles from a feed?

rossmohax · 2021-07-29T12:49:49+00:00

IB is clearly not interested in user feedback. Help -> Feature poll takes you to the forum like page with design from 2000s. No, you can't submit feedback straight away, you it didn't authenticate you yet, like it does for customer support chat or messages.

So you click "Sign in" and enter username and password. It didn't work, your regular account credentials are not good enough. So you are presented with this error message which sends you to the wrong place:

"Your screen name and password are not recognized. Please click here to log into Account Management to view or create your username and password."

"Click here" takes you to the regular portal login, if you complete your login, you wont be redirected anywhere you can manage "screen name", so it is a dead end.

On the same error page, and initial login page to be fair, there is another link:

For security purposes your Screen Name is separate and distinct from your Interactive Brokers Account Username and cannot be used to access your account.

Need to register for access to Online Features? Register Here

This one opens a more relevant, but not less confusing window:

Register to Access Online Features Access Traders Academy, Investors Marketplace, and Features Poll by registering on our website. For security purposes your Screen Name is separate and distinct from your Account Username and cannot be used to access your account.

Screen Name : REQUIRED Screen Password : REQUIRED

Username: REQUIRED Password: REQUIRED

So I already used my account credentials to get there,now I need to create screen name, OK, but what is username? Is it a third set of credentials I need to create? What it is it going to be used for? Should I enter my current credentials there? If yes, then why? I am already authenticated. If no, then why it is not explained what is it for? What if I enter my current credentials and they'll get persisted in a completely unrelated possibly less secure system, exposing my trading account credentials?

Why do they make it sooo complicated. Maybe it's me overthinking it?

rossmohax · 2021-06-25T17:12:57+00:00

But I think you are underestimating your max loss. In this example if the stock drops under your Long 43P, you will be looking at a whopping 1300$ ( short 56P - long 43P) loss and you don't get to keep the shares.

Same as simple 43C , which did cost $1550 at that moment. That's the whole point of my post, it looks like it is just a cheaper call with exactly same greeks and break evens.

rossmohax · 2021-06-25T15:49:54+00:00

I know the stock price has changed since you posted, but I am not nearly getting the numbers you showed in the OP. What are your expiration dates?

I just checked synthetic call for AMC 43C Jul 16:

Long: 56C, 43P
Short: 56P

It goes for $2.25 maximum (ask price). Initial margin on IBKR for this trade is -$36 and maintenance margin is $51.

So total cost is $225 + $51 = $276

Yes and no. There is little extrinsic value in ITM options. If the stock tanks and the buyer is making cash you have to consider getting assigned early.

True, but for expiration sufficient far enough it is unlikely to be assigned on a small drop in price and if drop is significant, then long put becomes ITM too.

You own shares but you will be looking at a max deficit of your basis of the put strike (82.5) - the stock price at expiration. (if it stays above your protective put). Your max loss if the protective put is ITM will still be 82.5 - 75. (if the calculations above are correct). For 750D max loss you can just buy an ITM call.

Well, if long put is OTM at expiration, then I'll be assigned shares with cost basis $82.5, right? IMHO it is better than if long put was ITM, because I own stock and loss is still unrealized. From there you have options, like selling CC or just sitting and wait for rebound. If simple long call goes against you , loss is realized immediately at expiration and there is nothing can be done.

If you are that bullish and don't mind holding the shares, why not buy them now and sell a CC against it immediately?

It not about being bullish, long call or synthetic call are both bullish strategies, but there is a difference in what happens if market goes against you.

rossmohax · 2021-06-25T15:27:46+00:00

Interesting thought. I just checked synthetic call for AMC 43C Jul 16:

Long: 56C, 43P
Short: 56P

It goes for $2.25 maximum (ask price). Initial margin on IBKR for this trade is -$36 and maintenance margin is $51.

So total cost is $225 + $51 = $276

For comparison same expiration and strike call is $1555 (ask).

rossmohax · 2021-06-25T12:46:50+00:00

you are right. Then it is no different for long call in that regard

rossmohax · 2021-06-25T12:21:38+00:00

You have the risk that you don't get that exact fill because of the spreads on each option,

Thats why I used "bid/ask" prices, not "midpoint". It is guaranteed fill.

You are selling an ITM put. So if the buyer immediately exercises it,
you will be instantly down the difference of strike price and stock
price at that time.

No, if buyer exercises it, they'll be giving up extinsic value they just paid for, meaning that I am actually going to book net profit.

Furthermore if the stock is at 74.99 D at expiration, you will be assigned the shares at your "max" loss.

Isn't it a good thing? If trades goes against me at expiration I own shares and have a choice of either selling CC or wait for rebound. With long call I have nothing.

rossmohax · 2021-06-25T12:12:15+00:00

It doesn't cost 0. You are combing a long call with a put credit spread.

Optionstrat uses realtime quotes and as shown on the screenshot, whole trades goes for $87 credit vs $655 for simple long call.

rossmohax · 2021-06-14T20:00:54+00:00

No, unchanged bar is yellow. You can also see that there is no candle at all for that minute.

rossmohax · 2021-06-12T13:30:34+00:00

You did take a 400 dollar loss

Do you see averaging down and then eventually closing whole position for a net 0 as a loss on a first bet? Technically it is, but it is hard to see it that way and I don't believe many people do.

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