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Haven't had time to call the "Active Trader Team" yet because trading isn't my day job (so unfortunate). However when I pushed the girl in some call center in Dallas on Monday she basically went back to her script, over and over and over. Completely useless. What is hysterical is I bet...

Well in that scenario I would be selling the spread (short the NTM long the OTM) So in that scenario a 10 contract spread with a strike spread of $5 would be a margin req of $5,000 -- since that is the max loss if it blows past the short and the long.

Right that is the issue. Because if you close a spread the SAME day you open it, it doesn't recognize or calculate the margin requirement even though you have the other side of the spread to cap loses. So they look at your short contracts and require you to hold or post 15% (I think) of the...

Well, ironically the day trade call was $153k and my trading account is considerably more than that. I also used to be flagged as a day trader but that flag wore off and thus I didn't have to satisfy the day trade call. It doesn't really protect you, it hurts you

Bumpity bump bump... 170 views and no thoughts!?

So my broker (Fidelity .. I know .. I know) has to play by the SEC/FINRA rules like anyone else and recently called to remind me of something that I find quite frustrating so maybe some veterans can explain the logic.... So if I open a 10 contract PCLN short vertical spread (lets say last...

Relative IV vs. HV or other strikes in the chain is one way to describe if a contract is "pricey" or not, regardless of long/short.

Right, because I explicitly said this "would have" been.

I mean... who would go short a straddle on an earnings/sales date with IV so high? I am sorry. I made assumptions we would be logical and pragmatic. I will be more precise, and unfortunately more verbose, in the future.

Going long $37 ATM straddle. See OP

Well when I was looking at the trade was Monday (see January 13th OP above). I just checked Fidelity's site.. at EOD Janunary 13th the... $37 ATM P - $1.42 $37 ATM C - $1.34 Thus: $1.42 + $1.34 = $2.76 $2.76 / $37 = ~7.5% move. We had to see it coming, the IV was through the...

Well that would've worked out well

Thanks Richard, I agree. I went in on two Weekly Spreads yesterday. Got 5:1 R/R on a PCLN spreads for this Friday expiry and a GOOG one for 5:1 (now) as i've lopped on a call spread to complete my IC. I closed out my call side to PCLN about an hour ago for a 0.05 Mid. took one side...

The ATM $37 straddle for this Friday's expiry is ~7.5%. - Sales release Thursday the 16th. - Down 2.68% today so far. - IV30: 45% - HV30: 30% -ATM IV for $37 Put & Call: ~88% Thoughts?

But if you're saying look 1-2 months out and picking the highest IV why not take that Feb 7th Put for an extra 15 bps vs the Jan 31? Plus that would extend your time horizon more -- to be around the (1) one month time frame? Also that IV is great as long as price stays flat or down. Is...

Completely agree. I go into a trade (if Iron Condor) admitting to myself I have no idea where this stock could move. But I do know, statistically, it won't move outside a certain range on a 'normal week'. No big FED reports, no earnings, sales releases, product announcements, etc...

If you saw GOOG open @ $139 today, you must have pretty good eyes ;) $1,139 may be more likely.

It is B because I think of it as a cash flow problem: You you will receive $226 no matter what. You will pay out max $1,000. So on a cash flow basis, max cash out you're paying if this boy goes belly up is ($1,000 - $226) or a $774 cash loss from your piggy bank. Just my view.

Most of mine are actually 10%. It is tough, but I squeeze in 3-4 trades a week. I used to enter Monday's but now I find the pricing is better for my strategy between 10am-11am Tuesday mornings for that Friday expiry. I have the discipline to not trade when I don't find a trade that week to...

I don't enter a weekly spread unless the r/r is MAX 4:1 anything more I walk away (obviously gets a little skewed with commission). I make sure the Deltas are sub .15 and I run a modified probability calc I have to make sure it is also sub 15% of achieving moneyness. I close the a spread...