Replies to post #117198 on Option Millionaires

[gambler]

Thanks again Lee for your feedback I'll look at premiums.

[Cstern71]

Lee I have a spread question for you...

I entered a credit put spread, sold 95p and bought 90p, and had 5 of each so margin was $2500. I let the options expire last friday as worthless. My buying power was decreased by the $2500 margin requirement when I entered the trade, but it has yet to be returned.

This is all in a paper trading account and I'm trying to learn the ins and outs of spreads and selling premium. Is there a time frame for the margin requirement being returned to me to use?

[Derek ops]

Lee I am really starting to think I may try your method of going short by selling calls. I have LNKD calls and puts this week. Monday did well on the 100 puts after the quick push to 107 and then the fade down to 102. However, I went in with 110 calls that day too and those went all the way down to .05 today early on before they rallied to almost .90 then closing at .55 I think.

If I would have used your stradegy I could have sold the 110 calls and made even more then what I have cleared so far. Just by buying the 110 calls back today at .05 I would have made more. Very interesting approach you have and the more I look at it and paper trade it the more I see the advantages.

[El_Lobo]

Could you post some literature on that technique?
Im still trying to learn the pros/cons of these spreads so anything helps.

TIA