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If you close the entire position before expiration, then you don't get to keep the premium. You have to buy back the call which will cost money. If hold the position through expiration and if spy is at 110.01 or above, your stock will get called away at 110 (thats the price you sell it at) and...

Yea you guys are right. Its a horizontal calendar spread. I miss read the post. My bad. Sorry If i confused any one.

They laugh because so many day traders fail. 90% or whatever is a number I see a lot. A LOT of people try day trading and a lot of people fail. A lot of people just go in thinking its easy money and they don't have a strategy. When I tell somebody who asks me that I'm an investor (i'm not a...

a collar is a stock play, its mainly for hedging downside risk in a stock you already own. It doesn't require any cash if you already own the stock. And if you don't own the stock, then yes its more capital intensive but you have defined maximum loss. Its basically a conservative call spread if...

This is called a diagonal calendar spread. Its something I like to do. Since that front month option your short has greater and increasing theta, it makes sense to go short a front month and long a back month. If and when the front month expires just write a new one. Great way to take advantage...

lol.

Collars are a nice conservative strategy. They cap your upside but limit your downside, all for free! I would say to put a collar on when you want to own a stock but are worried about a future negative catalyst that could hammar the stock. Collars are better than puts at times because they are...

No. Your wrong. In theory you are right, but the price decay that a 3X etf would experience in this timeframe would be significant and would alter those numbers. If spy lost 50 percent in one day, then yes what you said would be true, but it takes a long time for the market to fall 50%. Consider...

That put was probably not a bet on ge going down and more like insurance to protect some nice gains. The stock has run up from 10 dollars in recent months, and from just under 6 since the march lows. It ran past seventeen, thats a huge run. Now If someone made a huge "bet" on a 12 dollar put...

Of course theres a difference. You cannot invest for the LONG term with SHORT term options. Unless you want to roll out your position 15 times. If you like a stock for its long term prospects, assuming long term is 2-3 years, then you cannot buy short term options on that stock simply because...

sold the puts for a loss at $1.10, should of got out on friday probably.

thats what i was thinking

Amen. Good customer service and you can modify or cancel as many orders as you want without being charged.

+1 Thats who I use. Unless you are very small and investing only a few hundred dollars at a time, or only buying options on multi hundred dollar stocks like google, then options house is the way to go. Its flat rate fee is the best. The fifty cents a contract or whatever you pay at some other...

My limit order for 50 MWA november 09 $5 puts was filled right before close for $.50. They went up 12% on news that they expanded a future planned stock offering from 27.5 to 32.3 million dollars. The stock took a hit when they first announced the stock offering a week ago but then began...

Bought 16 HGG January 10 $15 puts at $1.30. Stock was upraged from equal weight to overweight and it opened up about 7%. Then it rallied for the remainder of the day, which I think was mostly short covering. Shares short were 17% of float as of end of august. finished up 20%.

Covered the 200 shares at $24.17. Didn't move like I thought it would today. These biotech stocks pull back sharply oftentimes. If they don't they usually go sideways or up slowly. This may trade sideways for a little while.

Wow check out arena pharma. Down 30 some-odd percent premarket on news about its weight loss drug. Then this morning it was down just 10 percent. I thought about getting long but figured the I missed it. Now its UP 15 percent on 40 times the normal volume, and its barely lunchtime!!

put in a limit order for puts on MWA, below market price.

thank you. I think I was typing torbin instead of tobin the whole time. Thats why I couldnt find it.