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If you want to trade with the NASDAQ 100 as the underlying, I suggest using MNX options instead of QQQ options. Three reasons, two of which apply in your case: 1) Much lower commission expense (as a percent of premium $) because 1 MNX = 4 QQQ. Thus the commissions are up to 75% less. If...

Well, you did do a disclosure early on in this thread saying "FWIW, it serves my interest to report the trade here -- hopefully some of you will jump on board and we can lower the implied volty in this dog..." So if you don't mind, what are your trade management strategies? In...

When rates "shoot up" they will be forced to save (to cover debt expense) instead of spending. Won't bode well for consumer demand.

I look forward to Mav's reply but in the meantime, here goes: 1) Keep 50% of your equity in cash. If you believe the long term trend is positive, then you leave yourself the ability to "double down" during (hopefully) short-term corrections (-5%). 2) See number 1). Buying options as...

Try thinkorswim. I don't day trade, but when I do trade they seem quicker than OX.

But we're not talking about the impact these things have on US employment or the US economy more generally; the discussion is on their impact on the stock market. US-based corporations will benefit mightily from internet-based productivity gains and from the fast-growing consumer classes in...

No, the people who speak with large $$ move markets, and plenty of them are careful (bearish) now too. I do recognize the problems we face (deficits, social security black holes and the like) but I don't reckon they'll cause a crash per se RIGHT NOW, or even this year. I plan to be...

But what would China do given that their currency is pegged to the dollar?

The talking head is right: the Fed will not raise rates until after the November 2004 election. Their bias is not to, and given reports like the one you cite, why should they? Lower rates mean less competition for stocks...where would you put your dollar assets...in a money market fund?

Reading all the bearish comments on this thread makes me... sigh a big sigh of relief. If you all were bullish, then I would be concerned about a crash. Please keep shorting and buying puts because, as the old saw says, the market climbs a wall of worry. PS: Any bears reckon that...

Well, my tax guy says "what is not prohibited is allowed." To which we would add: "until it isn't" Options traders are risk takers by nature so I suspect I will not be the only one trying the "grey area."

Yes, but what about options on QQQs? While I know it might seem obvious that if the underlying is not 1256 then neither are the options, there are opinions to the contrary. Does your statement refer to the options too?

Interesting perspective on this question on the Green Trader Tax site http://www.greencompany.com/gttforu...fpart=1#Post237 Did anyone treat QQQ options under 1256 for 2002? (I did not ) Anyone challenged on it by the IRS? I had a decent year last year (2003) and while I believe in...

So too would I think except that all of the 'experts' seem to say that 'further guidance is needed.' I suppose the counter point would be that if one traded only QQQ options (not the underlying) then one is in fact not dealing in the equity but in derivatives of a 'broad-based' index, complying...

Interesting prespective on this question on the Green Trader Tax site http://www.greencompany.com/gttforum/showflat.php?Cat=&Board=TraderTaxStatus&Number=180&page=0&view=collapsed&sb=5&o=&fpart=1#Post237 Did anyone treat QQQ options under 1256 for 2002? (I did not :mad: ) Anyone...

My reading of Gallacher is that position management is THE option sellers edge; otherwise expect to breakeven (before commissions and spreads) all else equal. While I am by no means a knowledgeable person in the context of these boards I will offer my working rule: survive to trade another...

It seems to me that we might want to contemplate how to be long vega under two very different ways that implied volatility rises. 1) IV trends up (e.g. VIX 1994-97 when it doubled over 4 years). This can occur in a rising market. 2) IV explodes up (e.g., VIX summer 2002 when it doubled in...

OptionsXpress is entirely browser based whereas TOS has it's own software that you download to run. TOS seems quicker and has some very interesting trade simulation and probability and volatility analysis capabilities. OX provides full option chain quotes (TOS sticks to near-the-money) and...

She makes it sound so easy...it's a wonder that she doesn't just retire on the boatloads of money she must have made. Gee, she must be teaching her courses out of the goodness of her heart because if she was in it for the money she would just do more of these slam-dunk trades.

Also ToS has good customer service and a great let's-have-fun-while-we-are-doing-this attitude.