Search results

I had an account with Fidelity for many years because they had my 401(k) when I worked at a Fortune 500 company. When I left, I rolled the 401(k) to an IRA at a different broker. When I started looking at alternatives to Schwab, I decided to try Fidelity. Even though the 401(k) account was...

Yes, of course you can buy the stock without using any margin. But that ties up a lot of capital. You can establish a synthetic with a very small amount of cash. And the margin is based on the short put, which can be way less than what you would need to buy the stock. I concede that this may...

Margin requirements on a synthetic stock position (long call + short put) may often be lower than buying the stock.

My experience with my Schwab became rather unpleasant over the last year or so. Tried Fidelity, and had different issues there... Just opened an account with TD Ameritrade. I have not yet begun trading. But so far I am impressed with their platform, and with the account opening experience...

He was kidding around. The image associated with my username here on this board was, up until this morning, a photo of Bernie Madoff. Madoff died today in prison at the age of 82. I changed my photo because I thought it seemed like it was in poor taste now that he is dead.

Bitcoin is not regulated to a degree that allows any kind of meaningful protection from errors. Some form of regulation is probably coming soon, and the IRS is certainly interested, but the whole point of Bitcoin, for many, is precisely the fact that it can be transferred electronically without...

Cash is treated a little bit differently. But even with cash, in some states and some countries, you are not automatically entitled to keep cash that you find. The law varies wildly from one jurisdiction to another. If you find a twenty dollar bill on the street, no one is going to say you can't...

Don't you mean highly improbable? And the OP may not know what you mean when you say "your fly pinning to the exact penny." If they are still learning how a credit spread behaves, they may not know what a fly is, and they may not know what you mean by pinning. With that being said, I agree...

Soooo... just curious... Suppose you walk into your bank lobby and deposit a check. You know, like maybe a check for $150 from grandmother that she sent you for your birthday. Or maybe it's a check for $210,000.00 that you just received because your sold your vacation home. And you...

She did not get to keep the money, and might wind up doing some time. And she lost her job as a 911 dispatcher. https://www.theguardian.com/us-news/2021/apr/13/bank-error-in-your-favor-windfall-louisiana-woman

On a credit spread, you want to close the position for the lowest possible amount of money. I realize that this is hypothetical because you are paper trading. If you collected 2.05 when you established the position, and you now close it for 3.17... That means you collected $205 when you...

If you collected 2.05 when you established the spread, then closing it right now, at the numbers in your original post, would result in a loss.

If it is a credit spread, that means you collected money when you established the position. When you close it, you will pay something--hopefully less than what you collected when you established the position. When you close a credit spread, you want to pay as little as possible. Many traders...

Is this a call spread or a put spread?

It appears that Binance is not authorized to provide futures trading to US residents. They are under investigation by the CFTC. Futures trading is advertised at binance.com. But US residents are directed to binance.us, which does not offer futures.

So are you saying you've found a strategy where you can't lose? What if the stock goes waaaay down? You have a put to limit your loss. But you won't recover the premium you paid for the put. BMK

I can't comment on China. But the idea that most criminal trials result in convictions is not that surprising, and I suspect that it is probably true in the USA, Canada, England, and other western nations. The part you may not be accounting for is that most criminal cases do not go to trial...

If the stock goes way up before you have sold enough calls to cover the cost of the put... You will probably have a net loss on the position. The last call you sold will be in the money, and get exercised. The profit on the stock may not be enough to absorb the cost of the put, leaving you with...

What you are describing is a variation on a collar. The classic definition of a collar is long stock, long an OTM put and short an OTM call. The premium collected from the call is sometimes enough to cover the cost of the put. You limit your downside risk with the put. You limit your upside...

I don't trade crypto on Binance or anywhere else. I don't know if it's legit. I don't know if it's available to customers in the USA. Just posting an image of their website. Last week I bought a few shares of GBTC due to FOMO... BMK