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Beware of someone who creates a new nick to chime in. Beware of someone who posts trades well after the fact.

:D:thumbsup:

Heh, there is the infamous story of someone stealing a suitcase full of money during the German hyperinflation. He dumped the money and took the suitcase.

That's what she said.

Billy the Kid, Wild Bill Hickok and nearly every other Old West outlaw/gunfighter. A few were badass, but many just inflated up their own stories based on a few incidents. Wild Bill, at least. had some stand up fights. But the press and dime novel writers also exaggerated their exploits - and...

B1S2, much respect and thanks for posting. I was long from 53ish and took a big hit. I flipped short, but closed between 47.30 and 46.80. Net=a big drawdown. Crappy timing. I continue with confidence, nevertheless. Generally, I find that veteran traders won't fault you for a loss. The...

I'm getting blue instead of green when I transmit.

Standard American style options are contracts for delivery, regardless of other positions of the holder or seller. The exercise and assignment is a transaction between these two parties. If the holder and seller of an Amer. equity put do not hold any position in the UL, and the holder...

Well, your question is a little vague. If you open the spread, do you intend to close the 32P? Opening the 30/35 spread would not be a roll in any sense of the word. Either way, with the spread; you'd still have the 1.51 loss in the 32P realized or unrealized. You added the loss to the roll...

On TWS, I see a short sale restriction for 3/15 and 3/16; for DUST.

Supposedly, there are some preferred stocks out there that behave like PIK bonds. Not my area of interest, though.

TASR 2003-2004. Bullshit hype by the firms and the Co. itself = Insane price action.

Yes, selling the option is the easiest way out. But ITM markets may not be very liquid. Deep ITM may have no quotes at all. It's easy to see this with volume and pricing. If you have to sell ITM, you may have to settle for less than intrinsic. The quick and easy way out is to exercise and...

True. Given the wording of OP's question, I felt that my generic answer was sufficient. His level of knowledge seemed to justify it. I should always add "generally" or "there are exceptions" to option rules of thumb because, generally, there are often exceptions. And because of guys like...

The Titanic?

No, right now the ES Sep. 30 2160 call is trading at about 5.75. ES is about 2144. If you bought the option and exercised, you'd pay 2160 + 5.75 premium = 2165.75. Compare that to the current market price = 2144. You'd want to sell any option with any time value. Only ITM options trading...

Very nice.

In many cases, it is probably better to sell the option. If the option has little or no time value, you can sometimes get a little more by the exercise/stock trade. For example, S=100 and you hold the 95 call. Bid/Ask might look like 4.80/5.20. You try to sell the call for 5 and no takers...

Hey Jack, Yeah, you're right about the short ITM calls. My bad. You end up owing the div. though. Actually, depending on the option position, you'd be better off in the unlikely scenario of the ITM calls not assigned. The short ITM calls will not adjust to ex-div. as much as puts and OTM...

OK, one can assume that in the vast majority of cases, the option is trading at or near parity. As stated before, in most cases, you want to trade out of short ITM calls before ex-div. because it's likely that you will be assigned. With option trading it's always wise to be able to trade the...