Recent content by TimeCorrosion

They do lock in losses: If they buy stock at $100 today and sell strike 100 ATM call for $1 for this month, then they can distribute dividend of $1 this month. If next month the stock drops to $80, they can only sell strike 80 ATM call for $0.8 next month, and they lock in loss of $20 if the...

Many of us have a main profession (like teacher, doctor, lawyer, engineer) and we do trading on the side. But I spend as much time doing market research and trading as my main profession, I want to register as a professional trader, and I want my losses to be completely deducted from my profits...

Those covered call ETFs that sell at ATM in my opinion are unsustainable because if the stocks drop, they lock in losses at ATM. Any thoughts?

- Front month straddle + back month straddle

With the recent meltdown of the banks and the financial sector, many brokerage firms are also affected. How financially resilient is Interactive Brokers? What is the risk of IB going bankrupt? Thanks.

My understanding is that ACTUAL options prices are results of bidding and asking among buyers and sellers, but option Greeks are mathematical constructs and cannot be traded among buyers and sellers and thus should be just theoretical values. I have a November ITM TSLA 1100 put option with a...

Okay, the second issue was due to wash sale.

I thought about that too. It appears that my cash amount decreased by similar amount, but not exact.

(binary options) =~= (flipping a coin) + economics + (tech analysis)

My ITM short puts on TSLA at strike 1200 got assigned. But on the TWS quote monitor, it says my average trade price is 1159.61 rather than 1200. I called IB but they couldn't tell me why. Last week I sold 5 put contracts of SPCE at strike 14, and the trade price was 0.09 and the average price...