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Kny, I did not see your initial post(page 2). So on 1256 is it as simple as Futures are cash settled and ETFs are not? I guess can just check the specs of various vehicles, but if there is a general rule on Amer ETFs, Futures, and European stock options, and futures options most...

This is a common problem, maybe someone knows a solution. Example (real) I have 10 of DB Put 170-150 Oct-Sept Calendar Spread with DB at 126. Thus both have no IV or preminum left, but the B/A spread prevents getting out without losing some money. So I can wait till Sept and get the...

Futures taxes are much less than equities, but if an ETF has over 10 stocks it counts like futures tax wise. But on single stock futures option and SSF will have lower taxes

"Since when do OTM options have early exercise risk? I suggest you review synthetics before commenting on my answer. Darp: I misread your post, thought you said ITM. Yes if you can get the same value it is equivalent, bit often the Bid/ask is worse to get in, as almost worthless. But will...

Since when do OTM options have early exercise risk? I suggest you review synthetics before commenting on my answer. Darp: I misread your post, thought you said ITM. Yes if you can get the same value it is equivalent, bit often the Bid/ask is worse to get in, as almost worthless. But...

Why is that if I may ask. One simple solution would be to trade European options, since they are nearly all, well, European... Ursa.. Darp: I found what was looking for. All options on CBOE are European style (SPX, RUT etc.) Plus found out that "Broad based equity Options" which means...

"Why don't you use the deep OTM equivalent!? A deep ITM call calendar is synthetically equivalent to a deep OTM put calendar and vice versa. To see whether a particular option is American or European you'll have to check contract specs." Darp Answer: It would have same problem (early...

http://www.cboe.com/Products/Cash-settledIndexOptions.aspx Looks like most are European style, so making progress on this. Note: There are no European style stock options (like IBM) its all American style. NEXT QUESTION: Are futures options treated tax wise like futures, which is...

Hi, I like deep in the money calendar spreads, as the cost can be tiny and if it goes your way big payoff. The #1 problem is early exercise. I just got 30 Sept DIA options early exercised on me, thus have 3000 DIA I do not work. With European style options they can not be exercised...

The name is one a came up with, and yes can conflict with others. A normal ratio spread is like buying 10 and selling 15. In this case it more like buy 10 (either puts calls or stradle) and sell 8. Thus if it sits still you make less, but make money. If it goes wild, then instead of losing...

The one person I know that uses it for his entire acct did do 20% in 2005 with it, and he running 6 figure acct. I do not use it. Am tending towards cal spreds under ratio like 5x4(puts).

Likely on their site thinkorswim.com I heard from them in their free class by instructor "Don"

Thanks cnms2, I use hoadley, but his goes to 5 legs, never seen a 20 leg

Indeed, if you can do it, one would make a fortune. Just a tiny few do it, and indeed very rich from it. Buffet does close to 2% and ... But that is my min goal. Thanks for your input.

I will confess up front that I do believe in the holy grail, even if never find it, by believing in it, more likely to get closer to it. In fact there are risk free ways of making 3-4% per year on options, but that is not as good a some money markets, and is known about. On position sizing...

Appreciate all 3 responses so far. Did check out the other threads some now will do so more later. cnms2, That was very kind on the charts, so to make it realistic you took a real world case(BAC) and showed the up and down IV change effect. What it shows is that the upside is no risk...

I have just signed up for Elite, first post. Have seen the posts before doing searches on yahoo for option strategies and am very impressed with knowledge level here. Several greek masters post. Figured hey its worth paying for. Then found out its free when signed up :-) What a deal...