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Give the man a cigar. That sounds like the best explanation so far. Don

I would go with e) None of the above. If my answer is wrong, then their are two other logical choices a) or b). Because like delta both of these define a change in their target parameter. In summary, because one line of thinking has two possible answers I'd probably go with the logic...

I found IB's interface pretty hard to learn at first. Now that I know it, I like it. One thing for sure, IB's low commissions have increased my profits beyond the savings attributable to commissions alone. That's because I can forget about commissions when deciding my next play. For...

"All or none" basically means don't allow a partial fill. Some brokers have a minimum charge for any transaction. If your 20 contract order only got filled for a quantity of one that minimum can be pretty irritating. Don

Wouldn't this be considered a straddle for tax purposes and therefore prohibit any tax deduction? BTW my tax expertise is pretty low. Don

Thanks IV, you da man. Don

IV, What do you mean when you say "buying TARGET vols"? I assume you mean volatility, but I am not sure what TARGET means. Also when you say after the open I assume you mean after earnings release, right? Don

You can cry all the way to the bank. Don

I am not very savvy on Futures and would like to start a thread on that some day. Anyway here is my unwashed opinion on your question, maybe someone can correct me if I am wrong: Because Futures pricing contains an interest component there should be no advantage over buying the raw stock...

In an IRA I am pretty sure most brokers would not let you put the cash security into an interest bearing instrument. When they say "cash-secured" I think they mean cash not say a bond. OE automatically takes the cash out of the "high interest" MM sweep account. Don't get me wrong, all Else...

The cost of carry is included in the price of a short call, but not on a short put. So effectively you are getting interest with a CC, but not on a NP unless your broker pays decent interest on the cash security. OptionsXpress pays minimal interest on the cash for a cash-secured Put so a CC...

I don't think always using a NP is good rule of thumb. For example, one of my brokers OptionsXpress pays minimal interest on the cash securing a naked put in an IRA. Therefore it usually makes more sense to use a CC. It's best to do the math both ways (CC & NP) to see the difference. When...

In early Dec they sent me an email announcing the cash-secured put ability in an IRA. I guess their web site has not yet been changed. Don

I am pretty sure that Schwab recently announced cash-secured put writing in their IRA's. Although I have not tried to do so yet. Don

Well, if the stock falls before you roll you will get less credit for your roll. Vice versa if the stock rises before you roll. I don't think there are any magic answers here. Although your "flat to bearish" outlook says that you don't expect it to rise so you should probably roll now...

Your logic floors me we you say that options are not a zero sum game. I think what you mean is that the combination of options with stocks is not zero sum game and I tend to agree. However, options alone are zero sum. If I win someone else loses. The only conclusion I would draw from...

In general options are more risky than stocks, here's why: With options for every winner there is a corresponding loser. That is, for me to win you must lose. With stocks everybody can win because of the inherent pyramid scheme. In educated hands options are still better IMHO. But for the...

I trade options instead of stocks because I don't believe that stocks have any value and I like the downside protection of options. To me a stock is just a piece of paper with no real practical value. Okay, I might say stocks that pay a good dividend have real practical value, but all the...

After thinking about it I am beginning to see it your way. That is, if you don't have the cash in your account to cover the short stock value you will pay interest on the uncovered portion. The reason this makes sense is that you don't get interest on the short stock proceeds instead my guess...

I am skeptical of your explanation of short stock interest. Although I don't use margin so I could be wrong. Can anyone else confirm 4Q's explanations? P.S. My understanding is that if you fall below margin requirements you must deposit more cash or liquidate. I never heard that the broker...