Recent content by Yitzi

Also, I'm not quite certain of my strategy yet (the theory seems sound, but I'm not certain that my ability to read the market will be as good as I think), so I'd rather not risk a substantial portion of my assets on it until it's a bit more tested. If it works as I hope, my investment should...

Actually, I'm planning on more complicated spreads than simple credit or debit, and the main "work" of my strategy is based more in the choice of options than the nature of the spreads; it's a fundamentals-based speculation-based strategy, not day-trading. But yes, the low cost per contract is...

$5000 is still more than I want to start with, and those sort of tricks are really things I don't want to be doing... Apparently choicetrade doesn't. If that turns out not to be true, I plan to switch.

Thank you, but I investigated both of them; eoption counts each leg as a separate trade, which makes them more expensive for many-leg trades such as I am planning, and interactive brokers seems to require $10,000 balance minimum, which is more than I'm interested in risking at the moment.

Since you didn't specify, I will assume that the cash account has 0% payoff; it's not realistic, but otherwise you'd need to keep track of what went in when, and what the payoff is, making it more complicated. Now let's first look at just the compound investment. That's 1.5% payoff per day...

I'm looking to do some options trading, but due to the strategy I'm planning to use, my needs regarding brokers are somewhat unusual. -I am planning on focusing on severely out-of-the-money contracts, hence low premiums (think $1 per contract at the high end). Therefore, I'll be...

Assuming that you bought/sold calls (which your post seems to indicate), you can respond to an exercise on your written option by simply exercising the option you bought, delivering the stocks, and keeping the difference in strike prices. Worst case, you buy the stocks to deliver them, then...