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Well, when I first saw the design of the cover, and the title Rookie's Guide.., I thought it may have been written by Lenny Dykstra. The boilerplate stuff, pricing, nomenclature, greeks, etc are all very good and practical use information. Writing collars for credits is certainly a...

I have longs, shorts, and my longs are hedged with puts. I really have never mastered stops. I probably should see how much they save me VS. how much I lost being stopped out. Anyway, my longs are volatile, down today, but they always seem to bounce back. The profit from puts take away some...

...and you can sell the collar for a credit

Is there a link??

spin I should have said buying puts on stocks I estimate to decline vs buy calls on stocks I estimate to rise. I always get direction right, except when I don't. The reason I have not gone long many calls (vs stocks) is the volatility card. If I can get volatility and direction right...

Im thinkin' buying puts is a better deal than buying calls because volatility usually increases during a crash, and stocks take a slow ride up and a hard drop down. Each time SKF crashed (last fall and early winter) the value of the puts shot way up, then dropped as that etf neared the...

No, the best part was how to use all your account margin to sell ATM nakid calls on the 3x etfs, which he strongly recomments. Wait, I hear the phone ringing, Its my broker, do I have to answer it???:eek:

Investopedia.com Articles by John Summa are always a good read.

Talk to him about risk, capital preservation, and concepts designed to keep his capital. The only advice I would give freely is help him compute the total overall beta of his portfolio, (imo he should not let his total beta exceed .5, that is 1/2 the markets movement) as the traditional overall...

Income or net capital gains, what is the difference?? I have done some credit spreads in a demo account and i won because I got the direction right. The chance to gain 45 cents against the chance to lose 4.50, please help me, but I am having a hard time embracing the concept that that is...

I stand corrected I should have written **market maker**

It is like being a bookie You make more money when you hold the bets Until one day you can't pay off Then you get your legs busted The above is an **equivalent position**:D

1. close the sell order before 2. sell the 110 calls If you don't close the sell order and it executes you will have a nekkid short call, although I dont think most brokers would allow you to do that.

Something to consider: IRA's, 401ks, HR10 plans, and other types of plans generally do not allow spreads. so the investor is limited to what they can trade. In taxable accounts collars may be subject to different tax rules that may make the spread superior.

Now I understand options.. Thanks!:p

Maybe sell the collar for a credit, so if the stock just bounces around you make some money. A. If your bullish hold the stock b. if your bearish, sell or short the stock c. if you are uncertain, do a collar until you get to A or B If you are just a conservative guy/gal, just take a...

TA is technical analysis. It is the use of graphs and charts by traders to give a visual of where the stock is trading relative to its past. TA is used by options traders to try to pick the best entry points for a trade. This is important because stock direction greatly affects option prices...

In hindsight, it looks like you sold the puts at teh top of the range. IMO Drys is trading at the bottom of the range but has not broken support. I see some supprt at a bit under $6.00 What T/A did you use? Using the range is extremely important, expecially in such volatile stocks. Are...

Mark That book was the some of the best money I spent this year. Posters like yourself, (Spin, DMO, Xflat) with your seasoned, balanced advice is the very reason some people frequent these boards. The book was well written, balanced, realistic...and you do know that VEGA is not a greek...

Xflat..no, the march calls did not trade yesterday, I used the last bid price on Optonfirst. By the way, don't you mean buying intinsic value??. Perhaps there are some opportunities in volatility trading I need to research. Thank you both for your comments. Tom