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Eroom is an introducing broker just like the firm I work for, Victor Securities. We introduce business to the clearing firms (We are Introducing Brokers to Merrill Lynch Professional, Apex Clearing, ADM Investor Services & INTL FC Stone) and manage the relationship as the broker on the account...

One of my clients has 12 monitors. I'm picturing how creepy that would be set up on his bed.

I recommend that you don't start from a strategy point of view when it come to options. The approach I prefer is to have a thesis on where an underlying will or won't trade during a time period because of analysis you have done. Then, look at the current option markets to determine the best...

500 to 1 leverage? Really? Who offers that?

If you can make money from the hot tub, I say go for it.

Exactly.

Ok, that is a good question. If the put market is tight, I would use the mid point. If the are wide, you need a way to value the options based on the the other puts near that strike. I have away had a means to estimate that based on the option curve, but if you have to, you can use a BS...

Neither. I was asked,"Is there a formula you recommend using in determining how to value it?" The bid/ask is based on market makers markets plus customer flow. Since ITM calls don't trade that often, MM widen their spreads so they don't get picked off with quick stock moves. They focus their...

It would help to have a platform that provides fair value based on current or your own option skew. If you don't have that, you can use put/call parity as a basis. For an ITM call, parity + the put value. It will not be "accurate, but a close approximation. eg: Stock 100 Long the 80 call Put...

Yes, you have to value the option yourself and not use the mid point for options like that.

You are either lucky or much better than average. I'm guessing time will tell.

I agree. All traders go though a difficult times but you need to do what is necessary to survive to be there for the good times. I would also add that the next most important item, is to find an edge. You need to do something to give you an advantage or you will never turn trading into a profit...

You will not like my advice, but you don't have enough capital to properly trade anything including ES contracts. Even if some FCM is reckless enough to offer margin that low. You need capital to learn, scale into trades and make mistakes. You are setting yourself up for failure. Others will...

lawrence-lugar, Not sure how that relates to the post, but I had a 1999 BMW M Roadster. 1999 was also my best year trading. Good times. Bob

Ouch. Not sure I agree with that statement. I was referring to trading equity and index options. Equity trading in Nasdaq stocks required you to be a member because of set spreads. Trading NYSE stocks as a day trader could be done and I know many that were very good. They were called tape...

I started trading in 1985. Markets were very inefficient and there were lots of ways to make money without taking a lot of risk. Because there was more edge it was OK to pay higher commissions and higher interest rates, now there are lower commissions and lower interest rates and a lot more...

Commission in the 80s and 90s were much higher, but volume was much lower. Commissions for online brokers, prop firms and HF traders were much lower in the 2000s. Clearing firms have a few problems now. They no longer make a lot of money from debit balances and short stock. They have regulatory...

Cash accounts and margin accounts are very different in the way that the clearing firms can use their stocks as collateral. Some fiduciaries and investors don't want their stock lent and don't want margin or loans. Brokerage firms don't like cash accounts but they have to offer them. Being able...

BTW, I quickly skimmed the article. I have expressed my disdain for the statements made in this article in the past. When someone says it's "better" to sell OTM puts on stocks that you want to own anyway because the returns are better, it's just not true. If I love a stock and think it will go...

I did not read the article. Many of these option mentors and articles offer deceptive information. I'm not saying this person is, since I did not read it. An important metric for an option seller is the return from margin used. Because it is your max profit. That is not the same as the return on...