Originally Posted by
Seneca Pilot
You are correct. I didn't even think about options on equities. I only trade options on indices because I like my money. The indices are far less volatile than individual stocks and are more ranging in nature. Even when trending as they are now the indices tend to do it in a controlled way. The 1256 tax treatment is key to keeping gains if you are successful. It can be as much as a 15-20% savings.
I love iron condors on SPX.
Care to give an example of the trade? I put on a spread earlier in the week, and bailed on the buy portion when I saw the security going up, so I need to be convinced of these 'exotic' trades...