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Yeah, I remember the old Yahoo board days :) When I was struggling to learn "Getting Started in Options" by Michael Thomsett. Now, I can trade 8 leg options and do whatever I want to options-wise it seems with ease, but I run into the larger issue of how exactly to make money! I understand...

Yeah, it just seemed like it was too cheap. When playing with $150+ stocks that can move alot, it seems like you'd want more then $160 for the nearest strangle even for a few days. JJacksET4

Eliot, Just curious, did you run that position through an analyzer before trading it to see where the profit/loss zones were? Or maybe you do these alot and know. Also, what effect did IV drop have? I guess the IVs probably fell for both expirations, but since the stock moved so much...

1a2b3cppp, Of course a put can lose money even if it is ITM for example if you pay $400 for it, and it finishes $1 ITM, you would lose ~$300. The only thing I would say is that some people might (incorrectly) say their put is "in the money" when they are profitable, but it is not actually...

Volatile AMZN options: I was just watching this (didn't do any trades), but it lead me to a thought. First the numbers - AMZN close Tues (before earnings report) : 182.30 AMZN open Wed (183.25) So, the stock opened largely unchanged. As you would expect, long Apr strangles got...

First of all, just for the record, that is not a short combination - short means selling both sides - in this example, you are buying one side and selling the other. You bought the stock at 4.55, but you are only protected at 4.50 - so while you would make .04 net from the premiums, you...

Simple, the Last Trade was done at a time when the bid and ask were different then they are shown in your quote. I don't know what options you are looking at exactly (i.e. near the money, out of the money, etc) but here is the scenario (using completely made up numbers) XYZ is at $100 -...

Good call JJacks! :) Posted when SLV was about $34.

I agree that the number you are getting from Fidelity's program is probably wrong - if the stock price stays the same, I doubt it would go down THAT much (of course, being a weekly with only a few days to go, it could go down somewhat by Wed.). Earnings is certainly having a large effect on the...

What a guy!

I believe that any options that are even slightly ITM are exercised now at expiration under the rules of the option boards, unless requested otherwise by the owner. Here is a blog post about this topic: http://blog.mdwoptions.com/options_for_rookies/opinion-the-new/ JJacksET4

Yeah, basically what you are describing here is delta. Normally the delta for an ATM option is about .5, so as the stock moves, the option should move at half the rate of the stock. So in your example if the stock moves up 20 cents, the option should actually move up 10 cents. However...

No, the option will almost certainly NOT be exercised immediately - even in the June options you are showing for the example. QQQ is 56.84 The Jun 54s are 3.63 as you say There for there is 56.84-54=$2.84 of intrinsic value That leaves 3.63-2.84=$.79 of time value. You can be virtually...

First of all, I think you are mistaking when you say .60-.85 range is roughly proportional to the stock price. 23 divided by 22 is a 4.5% difference - .85 divided by .60 is a 41.6% difference - almost 10 fold! The actual amount the option price moves may not be much, but it is the percent that...

I don't know much about this company, other then the basics that we all know, but I did hear someone either on TV or an article who said basically that they feel ZipCar could have make profits fairly easily, but that would have hurt their growth. I imagine they are trying to build a national...

PKM, I think you have it basically correct if I'm understanding it correctly, but I question a few items: 1. If you wanted to hedge right from the start, you could have done that and bought ATM such as 28 or even 29 puts, but instead it seems like you are expecting a down move, then...

I agree with you - I think alot of people who don't retire because they say they "love their job" are largely fooling themselves. They might very well enjoy most aspects of it, but how many people like every part of their work? They are often afraid of change and the inability to go back if...

I don't agree with that - I often hear of people dying just days or weeks before retiring, so obviously they weren't "lazy" yet. Also, for example in my case, I have a job where I can sit in a chair all day (for the most part), but if I was retired and was still young enough, I would do alot of...

I agree with that part, but I also think people will be hesitant at best to visit Tokyo or other parts of Japan because of still many aftershocks (and a bad one could affect power, affect flights back out, etc.). Also, just the thought that going to Japan right now means that they have to deal...

I agree with this - the other thing is that some people post one specific increase item and claim that is 100% proof of inflation. I just bought some microwave burritos 3 for $1.00 - how cheap were those 10 years ago? Probably the same. You can get microwave pizza for $1/ea. Oh, here's...