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There is no new strategy for NP or CC. They are as simple as MTE has explained. I don't think it is necessary to find any books just to learn CC or NP. To really make $ in option trading, you need to learn more.

I can get the same low commission rate with no cancellation fee from a bigger public firm with helpful support team. Even when you have margin calls, they will call you and give you two days to fund your accounts instead of liquidating your positions without telling you.

They are not identical from the broker's viewpoint. Since you have the stock, CC is riskless to the broker. NP is not unless you have enough balance to buy the stock. Some firms will allow you to do NP in IRA only if you have enough balance to buy the stocks. Cash + NP = stocks + CC.

I didn't use IB for the same reason. I believe most profitable option traders have more cancels than fills.

Cool! Thanks a lot. Since I never used vega in my trading decision, just want to confirm my understanding here. Now I have OIH with position vega = -400, does it mean i will make 400 with 1% drop in implied volatility?

Does it happen often? Can we predict it and use it as part of our trading strategy?

They are not option smart. They are marketing smart.

The delta is not telling you the true story. I have a similar situation, and like to get some explanation or implication out of it. I have a option portfolio of VLO consists of naked puts and naked calls. Yesterday the position delta was around -40, gamma was -35 and theta was 12...

Yes. They have cancellation fee.

Can you trade ES options in IRA?

Can you trade credit spreads in an IRA?

I think so. Brokers like IB charge you the cancellation fee whereas ameritrade doesn't.

Are there any free softwares or websites that compute the span margin for you?

Interesting. But then why do traders continue trading index option? Are there any advantages of trading index options?

What is the margin requirement for future option? Which one is lower? Is 1 contract of index option equivalent to 1 contract of future option in terms of p&l? According to IB, commission cost of one index option contract is 0.75 whereas that of future option is 1.65. Does it mean that...

MTE, Can you give an example of SPAN margin calculation? Is the SPAN margin lower than the index option? I have been trading IWM options for a while, and will like to take a bigger position to move to either Russell 2000 index option (10 times cheaper in terms of commission) or Russell...

I have been trading stock options for a while and I want to consider trading index options or future options. What are the differences and benefits between trading index options and future options? Can we apply the same trading strategy to both index options and future options? Thanks in...

I like to get 0.75 a contract or lower with no other fees. I usually scale in with 5 contracts each time and don't want the requirement of 10 contracts minimum.

I am currently using ameritrade and fidelity with commission $8 + 0.75/contract. I put around 20 trades every month with a total of 100 contracts ( I usually trade 5 contracts each time ). I know IB offers 0.75/contract, but I don't like their cancellation fee. Anyone knows of a good option...

I understand that a lot of traders lose $ because of their emotion, and psychological issues. However, I think if you can't make $ with paper trading, there is no way for you to make $ with a real account. Set-up ( your edge) + emotional control => profit You need both. I am using a...