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magic, First of all, it seems you are trying to claim options are worthless by showing 1 example. That makes no sense. As far as your example goes, if that has a negative expectation, flip it. Who says everything has to be a long iron condor - if instead you bought the closer options and...

I really don't know why this would be the case. I think any stock could go to 0, or at least .01 or whatever. Realize the the book value of BP, their cash position, all of that and more is going to be pounded by the expenses they are incurring, the 1000s of lawsuits coming, etc. Nothing looks...

If the IVs were off by enough, maybe something like this would be possible? (and it would only require 2 trades - of course to sell the calls you would need a large account, etc.) Pretend XYZ is an index and UXYZ is the 200% fund. If XYZ=30 and UXYZ = 60 XYZ 35 call for 3 monts = $300...

1) A reasonable webguy could make that in about a one day - and take off for 4 hours on the beach. 2) Please calc for yourself what those returns would turn $10,000 into for the years listed - I didn't do it, but I think just 10K becomes well into the millions - why then be so interested in...

I think you are correct that they hedge with stock and also use market futures, etc. however quite honestly I am not a real good one to ask about market maker operations, as I really don't worry too much about it and have never studied it in depth. There are others on this board who know a ton...

mynd66, Yes, the 1.32 means there is 1.32 puts traded for each call The put/call ratio is viewed as a sentiment indicator - when the put/call ratio gets high, that means in theory there is alot of put buying and nerviousness about the market - when it gets extreme it can be looked at as a...

I'm usually pretty bullish, but I'm not sure how we get to 12K or even back to 11K for a while - people right now are afraid to buy stocks often at 25-40% off what they were just a few weeks ago - what will make them pony up the higher price to get in again? I agree bearish sentiment seems to...

I don't find myself in that position so that I would know exactly what IB or other brokers would do, but I would close the position and make sure that doesn't happen if it were me. I think this is your basic choice without getting too complex - either close both down or just keep the long...

Spin, Just as a question: Is it possible to open an OX account and just have say $500 in it just for getting IV chains? You would also get their other tools of course if you did that. I don't think they charge any fees such as inactivity, but I could be wrong and you'd want to be carefull...

Of course that is true. Also another thing for the OP to understand is that just because a trade didn't work doesn't mean it was wrong - if SPY had rebounded somewhat and the May 110s expired, of course, now he would own the June for a lower cost, maybe quite a bit lower. The bad thing is...

It is good to be long volatility when it goes up as you are long it - that doesn't necessarily mean it is good to go long after it has gone up. In other words, you paid a fairly expensive price relatively speaking for your Jun 109 put. My guess from reading your post is that you then became...

Talk about trying to exaggerate! U.S retail gas prices - 6 year chart. http://gasbuddy.com/gb_retail_price_chart.aspx?time=3 You can see gas was about $2/gal 6 full years ago and is now about $2.86. At just your low of 30% annual, starting at $2 6 years ago, it would be $9.50+ now. I...

If a person feels there is any chance of that, get a different broker IMO. 2) To hide the actual position from both brokers 100 shares of Citigroup????? IMO 3) There may be some commisssion/liquidity considerations... like one broker may offer pre-market size for stocks while the...

I am a coin collector, so I certainly don't mean to sound like I'm bashing gold, but I think it is funny that all these guys trying to sell gold talk about how great gold is and how horrible US Dollars are, yet they will happily trade their gold for your US Dollars! Just something to think...

prosserd, Of course, with options there are many possibilities for what you can do. You didn't really mention if you are referring mostly to day trading or longer term trading, but of course, even with stocks if you set a stop loss at 1%, you can lose more then that if it gaps after/before...

live, It seems to me that that could be a good trade - I mean I think the percentage chance it will work is probably high. My question becomes what about the big event happening and it fails badly? It appears this trader isn't specifically covered. On the put side, I assume they might...

All legs (calls and puts, long and short, short term, long term) of this trade I did on Apr 26th were profitable as of yesterday. I have attached a screen shot of the positions showing the total increase (not a one day change or anything). Of course, it's not a ton on money, but it is fun to...

It was in his older threads from previous years. Actually after reviewing, it looks like he started with 76K: http://www.elitetrader.com/vb/showthread.php?s=&threadid=87977 What's interesting is when he was over $600K and everything seemed to be going pretty good (I think there were a...

No Heat, Personally I think that is very good advice - for example, I never do a credit spread where the max risk would be say $10,000 (unless I was willing to take that loss), but it would be very, very unlikely to ever happen - if there is any chance and I can't accept that loss - I won't...

risktaker, What's even worse is for example TYP - it is a 3x BEAR fund for tech and it went from the $8-$9 range to have a day low of .15! There is something wrong there as there clearly wouldn't be panic selling of a bear fund on a day like this. JJacksET4