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Thanks to you all for the response.

I'm guessing there may be open orders from the previous day, for example GTC, market orders from traders trying to liquidate their positions. These orders vanish quickly. I've seen some crazy bid/ask at market open to catch some of these orders.

Question: I have see some equities with small liquidity in options (200-300 in OI), but the bid/ask spread is relatively small. I'm afraid to trade options in such equities, but not sure. Any comments.

I suggest also comparing the ATM straddle with a calendar and a butterfly.

TOS cannot change IV independently for each leg, only the entire position. I wrote them a suggestion to allow this, and they said they would put it on the list.

If you are going to spend $4000 for webinars and books, I would look at Dan Sheridan. For $5000 you get personal mentoring in addition to the other stuff.

One modest suggestion, when you "take the plunge", use one contract until you know what is going on. Thirty contracts is a very large price to pay while you are learning. Open a practice account of $5k, and go at least 6 months until you are consistently profitable. Then gradually...

I prefer calendars -- less slippage and commission. fly makes sense as alternative to calendar where there is high volty or skew.

FYI, the broker expects to get the request to bust a trade prior to the start of the next trading day.

You might consider doing the fly on RUT, or other ETF, not equities. The shorts should be ATM, adjust the wings so that you are near delta neutral. Put it on as a spread, not leg in. Exit strategy -- get out with a predetermined max loss (e.g. 20%). Put it on 30-40 days prior to...

Have not looked at the numbers but here are a couple of other ideas: 1. Buy close to the money put, sell further out put, outside the range you expect the market to fall. This is far superior to purchasing out of the money put. or, if the expected move is large== 2. Sell a close to the...

Just some friendly advice -- find another market. The SPX is inappropriate for your account size, just on the slippage alone. Check out the RUT, for example.

There are some webinars on cboe and thinkorswim web site which discuss this.

Here is how I see it: ATR is one day movement based on past price movement. The one day standard deviation is based on IV which is the market's assessment of future one day movement. Similar to to the relationship between HV and IV, as it relates to one day's price movement. Is...

As events show, the upside can be relentless, especially if the IV is low when you placed the position. It makes sense to protect the up side with a credit put spread. I think an IC is safer than a straight credit call spread. Just use some finesse (hedging) to protect the downside. Just...

Study "Trade Your Way to Financial Freedom" (second edition) by Tharp.

What makes you think the author of any book is profitable or knows what he is talking about? Your "free" resources is worth precisely what you paid for it. You get the basics, but that does not make you profitable.

You obviously know little or nothing about options, except to buy a call or put. You can build a profitable strategy using only options, e.g. calendars, verticle spreads, butterfly, etc.

>I managed to call the market move into this range (1405'ish) properly but now am in a pickle on what to do. Uncertain IV, possibly wide range-bound market, perhaps fly conditions here.

One example of mouse ears is to have more longs than shorts on the put side, e.g. long 10 puts, short 8. You give up some premium for insurance.