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What's medium to long term? Weeks, months, years?

OCC has an automatic exericse threshold of $0.25 ITM, which means that all options that are more than $0.25 ITM at expiry will be exericsed automatically for long option holders.

I realize that English may not be your first language, but try to explain in different words or in more than one sentence. As I said before, "People don't want to increase them gain/loss?" doesn't make any sense, not so much in terms of English grammar, but in terms of what you actually mean...

I don't understand what you're trying to say here! What do you mean by "People don't want to increase them gain/loss?" What kind of a sentence is that!?

:confused:

What is a contract? Go to www.cboe.com and look in Glossary. The volume on IBM options is only 300-9000 a day is because they don't trade any more than that.

What is volium? :)

FDA announcements suffer from exactly the same problem as earnings - the volatility drop. All in all, I'd say there's a 50-50 chance of profit on a strangle/straddle. About half the times the market prices the straddle correctly prior to the announcement, hence a straddle would make a loss on...

ATM options have a Delta of 0.5 not 1. Only deep ITM options have Deltas that are close to 1 (-1 for puts). So it must be one hell of a move in the stock in order for an OTM option to achieve a Delta of 1.

milstar, I have to disagree with you on Thinkorswim's platform (the one you have to download). Have you even tested it!? It is a great platform with exceptional stability and beats competition hands down. OX's web-based platform is stone age compared to Thinkorswim's and as one previous...

:)

Actually it was a joke, since Union mentions it in the first post.

Good luck blowing up your account!:) :D

Anseld, I went over the discussion and it seems to me that the difference in our views in this particular discussion lies in the fact that you look at it from a total portfolio point of view and I (we) look at it from a single trade point of view. Both are correct and important, they're just...

Anseld, I think you're getting of track here. The guy gambles with options as 20-25% daily swings cannot be characterized in any other way. No matter how you measure your exposure, if each day you're "fighting for survival" as the initial poster suggested then you're not doing it right...

Other index options settle the same way, e.g. SPX. It's a very inconvenient practice to say the least, but there's nothing you can do about it.

"The exercise-settlement value, NDS, is calculated based on a volume-weighted average of prices reported in the first five minutes of trading for each of the component securities on the last business day (usually a Friday) before the expiration date. If a stock in the index does not open on the...

Once again, mate, this is not trading, this is gambling. And you're right, up until now you were lucky, so if one bad day hits you you're gonna get wiped out.

I suggest you read some money/risk management books. 20% account equity swings in one day is way too much. As the previous poster has pointed out you're not trading, you're gambling and sooner rather than later you'll blow out your account. I also trade options and my risk per trade is no...

I got an Inspiron 9300 with an ATI Mobility X300 128MB video card and a second montor hooked up, works great. Works out of the box, no additions.