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>
> On a daytrade basis as you seem to indicate your tactic is, a long call is
> the same reward as a short put. Different margin requirements.
In April when the market tanked (I think it was Apr. 14) the implied
volatility of a lot of stocks skyrocketed. When the bottom was found it
plumeted just as fast. I sold puts on several stocks and bought them back
later that day. Had I purchased calls the falling volatility would have
robbed me of valuable premium but selling puts made the implied volatility
implosion work in my favor. So at least in my mind the rewards of a long
call vs a short put in that circumstance are very different. I would have
made money on long calls or short puts in that market.
>
> On a position trade basis the long call has better risk control than short
> put.
Only because your loss is defined at the opening of the trade, very
important.
I've made off better selling premium that buying it although I'll never get
rich trading options because of my pucker index. FWIW with a very high
pucker index this morning I went out and washed my car.
Cheers
John Manasco
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