TC....care to share your findings with me....all of us? Making a generic comment like that with no evidence is a lightweight move.

Speaking of lightweight Dave F.: Monica G. Oct 24, 2019 @ 17:57 9 0 I subscribe(d) to Dave's service. I am not an active trader and found that Dave's service was not for me and our clients. I intended to cancel my service before the anniversary. Due to an admitted administrative error on Aspen's end I was charged a full years subscription while still in the 8th month of service. This is not an inexpensive service. After contacting them the day after the fee was charged the only response I rec'd after multiple efforts is that I would receive extra months service, that is all. I do not feel great posting this however I am out a not insignificant amount of money and this is where I came to find Dave.

Morning Andrew - could you be a bit more specific? What exactly is the issue for you?

Andrew - what specifically is your issue? Opinions are fine - just like to have a little rationale around it.

I posted the tastytrade links, not because I'm a 'hater' as I have no reason to doubt the professionalism of Mr Floyd or his reasoning to be short BBBY (I'm agnostic on BBBY), but because whenever structuring an options position, at entry it should be set up in a way that has the highest mathematical probability of profit IF we get the desired directional move in the underlying stock. On the date of filming Mr Floyd's suggested selling an ITM Credit Call spread which that day had a probability of profit at expiry of 27% but also had negative theta (time decay would work against the position) i.e. the 10/14 Call Spread suggested is a low mathematical/probability trade of a short bias in BBBY. At first glance to the in-experienced the large credit received may tempt some folks to think "this is great, more credits mean more profits…" Sorry but No! Large credits with potential of relatively large profit AND low risk (small margin/buying power requirement) in the options world = lower probability of profit. On day of filming a higher probability of profit of 73% , and positive Theta (time decay now working in favour) was obtainable by moving the whole spread OTM (out of the money) e.g. 14.5/18.5. This is a higher risk trade but in return for taking on more risk and accepting a smaller max profit potential we now have a significant improvement in maths based probability of making a profit on the spread at expiration. Quick way to make a mental calculation for approximate % probability of profit with a vertical spread as follows: 100 - (Max Profit divided by Width of the Spread) Also FYI…… % PoP for Naked Option: 100 - (Delta of Breakeven) % PoP for Strangle or Straddles: 100 - (Delta of breakeven #1 + Delta of Breakeven #2) % PoP Iron Condor/Iron Fly: 100 - (max profit divided by width of the strikes) Lastly, neither I or any members of my family or friends have personal relationships with anyone past or present at Tastytrade or the Tastyworks Brokerage; I simply hold the view that when it comes to learning about Options there is nowhere better for Retail folks to educate themselves on Options trading AND most importantly, it's entirely free

One more thought, before placing an option trade, we need to be aware in advance of the available management/adjustment techniques to defend the position if the trade starts going against us. This video at 9mins 58 secs covers a quick summary of 'managing' Credit Spreads gone wrong. https://www.tastytrade.com/tt/shows/what-would-tastytrade-do/episodes/credit-spreads-and-trade-adjustments-06-21-2019 AND this second video has a more detailed commentary on adjusting Credit Spreads if they start go wrong, start viewing at 2 mins 50 secs….. https://www.tastytrade.com/tt/shows/market-measures/episodes/defending-credit-spreads-06-08-2017

correct