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Your line of thinking is sensible in a neutral to bullish market; however, I agree with others that you should revise the "just hold on" part. BAC is a great example. I bought some many years ago at around $30, and later more at $35, $45 and $50. Steady Eddie, nice dividend, impressive...

Yesterday I had 50 contracts on the BAC apr 10. I own 5000 shares at 5.50. I didn't want to sell my shares so I bought back the apr 10s for .51 and resold the May 11s for 1.22. Is this a good move? Droid, Congratulations on your successful trades thus far. It depends. The safe...

PS--Some novice traders do not understand that margin is not some sort of limit on their obligations. I had this conversation with a new futures trader the other day, who kept referring to his margin. The broker tells you to keep a margin--they have to follow some rules to maintain their...

Forgive me if I am beating a dead horse here. What people are trying to tell you is that the broker's margin is irrelevant if the underlying moves rapidly and option is exercised. Example: Today, you sell a 50 put on a $52 stock. Tomorrow, 1987 happens again, the market falls 22%, and your...

I have several very basic beginner questions. If would be terrific if someone can help. Please--assume I know nothing. You'll need to spell pretty much everything out for me. I'm not very computer-savvy at all. I want to purchase a laptop and air card as both a way to trade while...

Since my trading desk is in a front window of my house, I do not sell options naked. Seriously, though, selling NPs is a way to buy stock. It is not a way to consistently make income.

Hi buckshort, Hi--I'm an options trader, in Bellevue. What do you like to trade? Mary

Don't you think a stock has to be kind of crappy to get to $5 in the 1st place? It didn't start out at that price. Yes, everything gets beaten down when the market falls, but not usually to $5. I am hard pressed, even now or a month ago when the market was lower, to think of a truly quality...

A fair point. Yes, starting slowly is a great idea. Maybe the options posts are not so bad. I admit it's mostly the other areas of ET where one finds the "give up now" type of advice. In any case, my comment definitely did not refer to you. You have dispensed a wealth of helpful advice to...

LOL. Thanks for saying this, wartrace. I would like to frame it. There is no shortage of people on this forum telling newbies to give up before they start. And none us emerged from the womb knowing how to trade. Is it war trace or wart race?

yes, have been dealing with this also. There are two ways to handle it: 1--invest in these things, but don't trade them, so you won't have so many K1's to worry about 2--guess at your taxes, pay them on April 15, then file late. You have a few more months to file, and as long as you have...

Most options books are a waste of time. There are several posts here that cover which are the best books to read. You would be better off reading one good book than twenty bad ones. IMHO, Mark Wolfinger's Rookies Guide to Options is a great book for a beginner. I am now recommending it to...

I'm fascinated by the thought that some traders might change themselves unconsciously. I would like to hear from others about this. My process of changing myself was absolutely conscious and intentional. I'd also argue that the skills that led me down that "straight and narrow" path for...

I think it's a pretty safe stock for the long term. But who's to say we aren't going to 4500? It will get creamed with everything else, just not quite as much.

Probably yes. But I'm not an attorney, or an insurance professional. You need to get advice from the right places. You should not be taking the word of anyone on this board for anything.

I'm glad you are testing this on a friend. I think it is a good idea. Make sure you get an attorney to draw up a proper contract and an enormous insurance policy before you do this with a stranger. People do sue those who give them financial advice, and no matter how many disclaimers you make...

Nice. Are there options on it?

1. I tell them that the way I learned was by reading a lot for the last 20+ years, which is true. I tell them it's not a weekend avocation. It's not like changing your oil or baking a loaf of bread, where if someone spends an hour showing you how, then you'll always know how to do it. 2...

Would you feel comfortable posting a bit more information about the type of trades you are doing? It would be easier for others to help you if we knew the type of position you carry.

Hmmm. There are two time frames touched on: 1) 100 years and 2) talking to your neighbor every day It seems to me that there is a lot of ground inbetween, for which IV might serve as a useful estimate of expectations. If I were a long term investor, I would not give a rat's...