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I suggest reading McMillan before the Natenberg book. kny 3 :cool:

That's right, he's a beginner so have him skip the beginner book, Thomsett, it must go for at least $12 to $14 on Amazon with free shipping. If you are going to try to make this work, buy them 1 at a time so you have them as a reference for a long time. I'd hate to be in the middle of a trade...

Hey tradebanzai. Ask 10 traders their favorite options books & you'll get at least 10 different answers. My list (Amazon, everything ~40% off): Beginner: Thomsett - "Getting Started in Options", inexpensive, easy to read Intermediate: McMillan has 2 "Options as a Strategic Investment"...

Hey a529612. I wouldn't avoid I-T-M Calls at all. Deep ITM options should trade like water, no matter what the open interest. Your problem is that the price you can get in at reflects the cost of carry and a little vig for the market maker. One of the questions you should ask yourself is...

Do you mean Dominion Resource (D) In-The-Money (DITM) options ? kny 3 :cool:

It's similar to Options Toolbox at CBOE but with a few newer graphics. If you don't have any option pricing software, it's OK. kny 3 :cool:

Yep, closing price or current price on the underlying. IV for the closest a-t-m, or take a peek at the nearest o-t-m to see if you want to tweak it up a little. I wouldn't write a program to do this, #'s from either e-signal or optionvue should work. Keep in mind most programs take an...

I agree with MTE. Use the current at-the-money, average in & out if you're between the strikes. Article (if it's the one I saw) pointed out that 68% and 95% just 1 & 2 standard dev's, probabilities of where the underlying "should" be (from where it is now). 2 examples in article I read...

Beginner Book: Thomsett - "Getting Started in Options" Intermediate Book: McMillan (2) "Options as a Strategic Investment" or "McMillan on Options" Advanced (Intermediate to Advanced) Natenberg "Option Volatility and Pricing Strategies" All the other books mentioned...

I agree with zdreg. Post the advise you gave so we can all learn. Should be interesting from someone recommending Condors to newbies and referring to Covered Write myths. kny 3 :cool:

Hey ZF. Interesting post. 1. investor orders still get priority over market makers (to the best of my knowledge). 2. You can't have orders on the same side of the market? I can. I think you're wrong. Talk to your broker. I think market makers can't from off the floor, not sure. 3. We...

...but the little pig that built his house out of bricks lived happily everafter!!! :cool:

Hey Range. Since you said "Sep-Oct, up to 10% downside and reduce risk a lot", here is one alternative. (You could get 20 better strategies than this one). 1. Buy the SPX October 1205 - 1100 put spread for $11.50. Why sell the 1100 put? 1100 is 11.25% lower than current level. Why...

1. Which one is Sioux? 2. Expo people nuts for scheduling Las Vegas during Triple Witch week (and near holidays) and Florida in June/July. 3. Thank you Baron, super event. nice to mingle. 4. Availability of optional name tags earlier in event would have been more fun - you...

Hey Trend. Any pricing calculator will do the job. www.cboe.com , you can download or use it there. Download takes a while. It will ask you strike (you can enter 2 positions, I think), stock price, # of days till expiration (or click on Aug expiration), int rates (3%), dividends(0), and...

Hey Trend Fader. You are correct, buying an out-of-the money call and put is a strangle. I wouldn't call this a volatility play. You are buying options at the peak of their expected volatility because of the news; earnings. You bought the correct month, you don't need additional time...

Quote from Tyler Durden: Im trying to open an account with IB, but i noticed they ask you how long you have been trading to "consider" if they should open an account for you or not. I dont know if i answer honestly if ill be denied an account or will not have full access to all the option...

hey toby. This is where you should do some homework. Use a pricing calculator (something simple like the Options Toolbox). Plug in the stock price and test every bullish strategy you can find. The toolbox even recommends strategies by name, but doesn't plug them in for you. You say 1 month...

Hey Toby. I agree with Vhehn, but cheap o-t-m calls (as many as you can afford) and allow yourself plenty of time. If you think the stock will double/triple in the next year, the 18 month LEAPS ('07)should do just fine, sprinkle in a few 8-9 month calls too. Don't need the '08's, more...