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Hi. You're adding another layer to this cake. I'm not saying day trade LEAPS. VLO has a $0.30 wide vig on the $18 Jan '09 55 calls. IBM has (could be cause markets closed) sucky bid/asks on '09's, as does GOOG. I think you could hold long LEAPS for a year and equal as much time decay as...

Understanding LEAPS Marc Allaire & Marty Kearney 2003, McGraw Hill On Amazon 35% to 40% off list. I like writing s.t. calls against long LEAPS calls. Worst case scenario (other than stock tanking) is being assigned the short call. You own the LEAPS call so you're covered. If...

Hi Darp. At the web site you refer to, they agree with you. I don't know how old that answer is - the first year the Q's traded there was a delay in guidance from Treasury. I have e-mailed that site to ask them if they stand by their claim. I'll report back if they answer. Off to...

Hi Darp. Broad Based Cash Settled Index An ETF might be broad based, but it's not a cash settled index (e.g. IWM vs. RUT). Ignore whether it is European or American style, or AM or PM settlement. SPX is European and AM, OEX is American and PM. Both get 1256. If you are in doubt...

Darp and Flsupraguy, I left out the balance of the article. 60/40 Tax Treatment on Broad Based Options Options Corner From CBOE, Feb 1 2006 Years ago, professional market makers had several advantages over individual investors. They had state-of-the-art trading software...

This is also incorrect. Broad Based, Cash Settled Index options get 1256 treatment. Q's are not cash settled, they are not index options, they are ETF options, they settle in shares. Ask your broker for "Taxes & Investing" . kny 3 :cool:

Q's don't get 1256 treatment. kny 3 :cool:

Thanks for the reply. What is the exact ratio of SPY to SPX? Is it 10 to 1? It appears to be 10 to 1, but I don't want to make any assumptions. I noticed the prices aren't ever the exact same, but they are very close. What about DJX to DIA? Thanks, Frank Hey Frank 99. SPY to SPX...

If you do any strategy long enough, you will lose money at some point. The original poster has been given some good pointers as to when and when not to try this, and to what the risks are. When one sells options and collects cash, one incurs an obligation. Did you understand that...

Optioncoach is right. You sell puts on stocks you like. Look at a Covered Write. Very similar risk/reward. Limited gain potential on upside, big loss potential on downside. Understand the risk before you do any trade. Don't look at the premium, high premium might reflect an earnings...

Hey Murrat T T. Partial fills are probably not coming from market makers, rather individuals. You've got 20 to buy, an investor sells you an 8-lot - good for him - partially good for you. I think pennies might force orders like yours to step up a little at the end of day to avoid partial...

Hey W meant to be facetious, obviously didn't work. Point was if OP thought market too wide and he thought bid too low or offer too high, send in a limit order. .02 wide market in strike as of now, didn't think nit-picking 1 strike fair. Penny pilot in mho working, but big names like Q's...

Loufah, the Feb 27.50 calls have been open for trading for over an hour and fifteen minutes. 63 have traded. The Feb 25 calls were just 4.95 bid, offered at 5.00 (now just went offered at 5.05). Before .05 increments above 3.00, these might have been 4.90 offered at 5.10. The Feb 30's...

Hello a529612. Here's the scheduled rollout of the Penny Pilot. Whole Foods (WFMI) this Friday, 1/26 GE Friday, Feb 2 MSFT Friday, Feb 2 the balance (Q's, INTC, etc) Friday, Feb 9 This isn't official...

Here's a link to the new US option margin rules. This takes effect 4/2/07 (that's April 2), but I think it will vary from broker to broker as to how quickly they implement and whether they use minimums, at least for a while. http://www.cboe.com/tradtool/MarginReq.aspx kny 3 :cool:

spindrO 's answer is right on ! kny 3 :cool:

Hey Marshg one other thing to think about. If you are testing strategies around the VIX and OEX, don't forget there have been cash settled VIX options for the last year and VIX futures for the last 2. 2k futures and 21k options traded yesterday. More work for you. I love handing out...

Hey Marshall. VIX is based on the S&P 500, VXO on the 100(OEX). Although they track pretty close, it might be worth your while to track VXO if you're looking at the OEX. Historical data goes back a long ways on VXO. kny 3 :cool:

optionvue is one, there are a few others. Which ever one you choose, try for a 30 or 60 day trial. Fire it up, see if you are comfortable with it. It will cost a little, but at least you know what you're getting and paying for. Most have on-going monthly charges for updates, etc, your choice...

Hey. There are a few different Put / Call Ratios, and a few ways to massage them. cboe.com has data every day on index put/call, stock put/call, and a combo of them both. There a few people out there measuring Put$$ /Call $$, comparing at-the-money and a few out-of-the-money strikes (not...