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Thanks, CW! I gotta admit....you stumped me on the T day. Can't for the life of me figure out what days God brushes his teeth. I've searched google and bible.org. Ah! Wait a second. I just had an epiphany! Very nice!!! Very nice indeed. I won't share the answer here on the site since I...

Is the Rule of 20: when intraday support or resistance is broken, it will move 20 points in the direction of the breakout?

Volente 00, I'm enjoying your posts. May I ask a couple of questions? (1) What is the T Day Theory? (2) What is the Rule of 20? ....hmm, my apologies....guess that turned out to be three questions. :confused:

Your +383 is a very impressive day. I'm guessing you'll have a fantastic weekend! Hey, if you could throw this dog a bone...I'm a new YM trader that is seeing his account go south. I don't know if traders share methodologies on this site or not. But I'd love to know how you pick your...

sle, Had I sold otm puts on enron at the worst possible time, I would have lost 5% of my account. Had I sold puts on 9/10/01, I would have been restored in 6 months. One can overleverage themselves with options, long or short, equities, futures, you name it. It isn't the selling of...

gtg, how do you lose your money in a big bang by selling premium? A bit of info: My question is coming from the perspective of someone who only sells naked puts and covered calls. When my naked puts go against me and get exercised, I've already pre-determined before I entered the trade that...

Mav is right, and my prior posting regarding it being easier to lose your account buying options is technically and mathematically just flat wrong. The way people tend to approach trading options is more conservative on the selling side, in my opinion. In my system, a critical factor is only...

ktrader, if you can lose your account buying options, you can make a living selling options. You can certainly lose your account selling options, it's just harder to do.

riskarb, you got through to me. thanks for the education, you and the Mav.

correct, Palawan. Lower risk, lower reward.

Mav and Risk, What would be the covered call equivalent of selling the out of the money put (selling the ebay Aug 40 when the price is at 42.00)?

Yes, riskarb, but I prefer not to sell in the money puts.

Ebay closed at 42.00 today. Scenario (1): Sell the Aug 40 Put for 0.35. Scenario (2): Buy 100 shares at 42.00. Sell the Aug 45 Call for 0.30. August 19th, eBay closes at $30.00. Results: Scenario (1): Unrealized loss of 9.65/share (since you now own 100 $30 shares at a net cost of...

Okay, so now you've sold a put and it expired in the money, got exercised, and you now own shares of a company you pre-determined you'd like to have in your portfolio. What now? Get rid of them as soon and as profitably as possible. Sell covered calls against them every month until you get...

Selling naked calls is suicide. Sell naked puts ONLY and use the following basic rules: (1) Sell puts ONLY on stocks you would want to own right now at their current price. For example, let's say you like Frontier Oil (FTO) right now at $27.95 (7/28/05). You can sell the August 25 puts for...