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As you probably noticed, the strangle's value did not drop as much as TOS's model suggested. That's because the IV expansion and contraction hits the near month the most. Generally, 4+ months out isn't severely inflated unless there's something huge pending such as FDA ruling, lawsuits, etc...

Last I knew, it was a simple 20 question online test. Well, simple if you have a clue about options :) No series of challenging obstacles. If you have the approval and you have sufficient capital, they'll let you play with the king's daughter, no matter what she looks like. :)

That's probably true on both accounts. Brokers that require approval for add'l levels of option trading will let you start will covered calls and long options but will initially restrict you from spreads. Now whose ass are they covering??? LOL

"I dont plan on trading intraday, unless there is some huge movement or something." What differemce does that make? If your 5% stop is hit today or in 3 weeks, it's still a 5% loss. "You reckon then that I loosen up my stop losses then? How does one base the stop loss - solely on total...

"I have been trading my IRA with IB, and selling naked options is forbidden in IRA accounts. I am thinking of opening a regular trading account, and I want to get the highest level of trading privileges." It's not likely that a newbie is going to get the highest level of option trading...

When you know what the future will bring, you will always know what the best thing to do is. Otherwse, you place your bets and you use disciplined money management in order to protect profits and avoid big losses.

Warrants? (g) What happens if the index moves enough to result in your stop loss being triggered on one side and then the index reverses and moves solidly in the other direction? Hint: 5% loss on both sides plus B/A slippage plus commissions What happens if the market gaps and the...

1) IB provides a 1040 D for you and the IRS. The IRS requires specific info regardless of whether you use the tax booklet form, your own attached schedules or IB's 1040 D. You can't just list the net gains and losses. 2) You should maintain proper records of all financial transactions...

As for your conclusion about credit spreads and iron condors, I disagree. All positions have an adverse possibility. You should trade those that are in your comfort zone and within your ability to manage. You learned that you shouldn't trade anything that you can be around to watch.

OK, I think that I got it now. I'm going to take the middle ground and let you and MTE lob 'em over my head at each other (wink). Seriously, I think that it's a question of what you call a full hedge (semantics?). My take is that fully hedged means that as MTE said, delta neutral. In the...

It's an adjusted contract. From the numbers in thegazelle's link, that contract is worth about $2,767 (stock + cash) so if the Jun 35p is bid $7.20, it's trading under parity. IOWs, you'll be paying $2,780 for something currently worth less, ignoring commissions. If it looks too good to be...

moo and JSL Capital, Thanks for your opinions. Your suggestions make sense: "In short, given the choice, stick with XP" rselite, Thanks for that info. Between the new Norton and my upgrade to Int. Expl 7.0, it now takes me 15-20 minutes to get everything up and rolling in the AM or...

I I use my computer to trade with my broker IB. I use my broker to buy and sell options. Are you the new self appointed SYSOP?

I'm about to buy a new computer and I was wondering if any IB users are also on Vista. Everything going smoothly with the new operating system? Any other trading software interface complaints? Thanx

Well, sh*t happens. But at least you did your due diligence and chose an option strategy that enhanced the risk/reward distribution. Losing positions are part of the game... but why increase the risk? With these FDA situations, I try to scalp the underlying as soon as the news is out...

The AGIX news is in. The good news is that the stock didn't go to zero. The bad news is obvious. As a follow up, from a risk/reward perspective, your suggestion was on the money. At present, the Apr 10/2.5 vertical would have lost less than 1/2 of what the covered call under discussion...

And I told you that a 50% drop in IV is a very conservative number. If it drops to its historic average, it will be more like 80% down and that won't bode well for future months. Like we didn't already know this? If there's an unfavorable ruling and AGIX drops below $5, do you think there's...

Came across this in my reading. Don't know if his is any good. Give a look! Ya nevah know... http://simulator.investopedia.com/

You painted the rosy side of the AGIX story. The other side of the coin is: Phase 2 ARISE trials had problems and the company was accused of fudging the numbers. Phase 3 will have to do a big turn about to overcome this. There have been situations where the FDA gave conditional...

With these high IV pending FDA announcements, occasionally you'll see a reversal where there is a lcoked in profit. Problem is, the stock isn't borrowable.