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I am thinking about switching to IB, but have only used Charles Schwab before and want to make sure that the IB interface will be easy to learn. The platform is fairly simple to use for basic positions (buying and selling of stocks, options, etc.). There's a huge buffet of more complex...

If you want an answer for a move prior to expiration, you'll have to either provide a specific date, strike price and premium or learn how to use an option pricing model. On an expiration basis, for an out of the money put, the risk would be the cost of the put plus the distance to strike...

1) can you liquidate your position in option of a stock easily ie like stocks or are they hard to unload? If the current bid is acceptable, your contracts will sell immediately. 2) furthermoe, what does it mean by open interest? Open interest represents the number of contracts in...

If you sell the 75 call and it's assigned, you will be short the stock at 75. Your $2 loss comes from selling the stock at $77 (less the original premium received). As advised by others, read as much as u can before diving in.

You stole my thunder! Was just going top post the same :)

Simple rule of thumb: If it looks too good to be true, it usually is. And for the lunch crowd: There are no free lunches! :)

I would have been more impressed with that as well ! :D

My two cents is that you can set up all kinds of elaborate option strategies but there is no edge because there is always a market result that can defeat the strategy - apart from the inherent slippage. Other than the dumb luck of being long in an up market or short in a bear, the only way...

I would have been more impressed if you mentioned the wider B/A spreads and the extra commissions.

I think that you need to share what you're inhaling before bedtime :-)

Initially, both DITM options will be trading at parity and will have a delta of +100/-100 and your net delta will be zero. With a drop of 5 pts, both options will still have the same delta. For all intents and purposes, you will have a 5 pt gain on the put and a 5 pt loss on the call...

Timing is everything :)

Crap? LOL. Seems to me that both the double slingshot and the ATM straddle benefit from movement away from the strike and IV expansion. How you scalp/adjust is a separate issue.

Yeh, it means that there was a lot of interest in the options because BCSI reported earnings AMC and that there were a lot of closing transactions today - hence explaining the volume being greater than the open interest.

There are many ways to skin the cat. You have to get comfortable with the strategies that are within your comfort zone. Your conclusion is the obvious one. Find out what option niche suits you. And please forgive me for teasing you about your spelling. I just couldn't resist that one:p

How about a double slingshot? Suppose there's an earnings announcement coming up in a week or so. I expect some pre earnings IV increase and in that time, there could be movement to either side. Some of each could be a good thing. Obviously, I could not hang in through earnings since IV...

Stops are no guarantee that you maintain a profit/minimize a loss. If a credit spread expires, there are no a more commissions than buying you put (or call) and having to close it. Selling a leg offsets the TP paid for the long leg, particularly with inflated IV situations. IV collapse...

In addition to when, it also depends on the magnitude of the move that you expect. The simplest strategy is a straddle. They tend to be expensive and they lose on both sides due to time decay. On an expiration basis, GOOG must move past either strike by the amount that the straddle costs...

Fully Articulate replied with the pertinent criteria for early exercise. Barring a pending dividend or a corporate action, the most likely reason is that the short option is in the money and its time premium (TP) is approaching zero. By that time, more often than not, you're approaching if not...

I don't believe that you can determine the direction of the stock based on volume. That opinion and 50 cts won't get you on the subway :)