Recent content by StockApprentice

Here's my take. Futures busts are rare because fat finger errors which significantly impact market price are rare. If I see a significant spike in one direction my immediate impulse is to sit on my hands. I don't know what caused the spike, and assuming it was an error is arrogant. When...

Back Ratio spreads can significantly reduce risk & capital requirements. Play with itm options with varying spread widths. That should get you started. But like anything which reduces risk, there is a price to pay & profits suffer.

Option Volatility & Pricing: Advanced Trading Strategies and Techniques by Sheldon Natenberg ..and watch tastytrade.com

Both can be profitable instruments. Stay away from any forex broker who does not charge you commission, because they are charging you a lot. IB has 1/2 pip spreads on major currencies, and reasonable commission, cost. IMHO, Forex is more dangerous than index futures. Currencies often...

As you probably know, options automatically exercise at most brokers if they are .01 or more in the money. Of course, you can call your broker and make sure that they don't exercise, and that would have been the best option here. The real problem is: what is the official closing price? I...

That is not a daytrade. An overnight position was liquidated and a new one created. If you then exit the 1 share short on the same day you initiated the position that would be a daytrade.

I can confirm that forex spreads trade in .1 increments. I often get price improvement on my orders. My orders are only enter-able in .5 increments, but that may be to the TWS version (as indicated above).

InteractiveBrokers also allows CFD trading, but I can't attest to it since I'm a US customer and can't use them.

Not for US customers.

Pricing, time till expiration, & theta heavily influences the decision. What you have to realize is that the initial money is gone. Theta has destroyed your initial position. You can: Exit the position for the loss Create a spread by selling further away calls and hope for a continued...

You really are trading WAY out of your level of expertise. Look up exercise risk and spend an hour thinking about it. You should have closed the position yourself, but because you're an idiot your broker was forced to do it for you. They protected your ass (and theirs); you should be grateful.

Marketsurfer, I know you know the difference.. but just to clarify for others. There's no way to exercise an option on Nadex. All options are european cash settled. You can only close your option position before expiry.

It is volatility skew. It's something that was not priced into options before the crash of 1987. After that fun fiasco skew became the norm.

I'm glad you found that statement amusing. I certainly had fun writing it. The previous commenter (much like yourself) made assumptions about what I was trying to do, and instead of answering my questions, proceeded to tell me that what I was trying to do was not possible. In all...

Nike goes exdividend tomorrow. I think this screenshot validates that at least someone (with a sizeable bankroll) agrees with me. This is a screenshot of April 2011 Options. Notice the HEAVY call volume on the DITM calls.