Originally Posted by
mispoken
BTW I was looking at the wrong strikes; selling a Jan 2023 $170 put gets me $17 in premium and reduces buying power by $1700. So if assigned shares my break even is $153. If I buy the $170 call for $60 my BE is now $230.
This right here ^^^^^^^^^^^^^^ is the basics of options trading. The only other component that one needs to know about is that your time is limited and it all dies on a certain date.
I haven't looked it up, but I wonder what the Jan 2023 $170 call would have to be worth in order for [MENTION=13699]Trip7[/MENTION] to realize a 5%... 10%... 20% ROI for tying up $6100... And then what would the underlying have to be to get to those numbers. I have stated before that for the most part I don't look at percentage gain unless it is in terms of a full year because I just don't think it is all that useful unless it is repeated throughout the year.