Selling_Options

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I use OptionsXpress and they have a trade calculator that allows you to enter different spreads and see the ROI% (-100% is always the most you can lose) and charts the current price against the put strike prices (two of them..expiring in the future, one you bought, one your broker is lending you to sell. this is important cuz it gains value to offset the whole thing. the premium is a result of already being in the money and having time...time for others wanting the puts you have on the market. you don't want them cuz they can expire and you'd still be in the money.....kinda if you leverage alot of money for 20-30% it's pretty good. Now mind you, I'm talking out my ass and Ziv can definitely jump in here and correct me. I'm learning but it is hard. I'm interested in Moving Averages (10 and 20 day) and this theta variable for discounting, I think... took typing in high school!