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See attached analysis for the strategy you described.

It is a long delta, short vega, short gamma position that will have open-ended loss. Risk is on the downside. You can play different cases in the Options Lab at http://www.TheOptionsLab.com make sure you choose Offline tab so that you can enter the data manually. Also the price you...

The IVs for both stocks' options have been steadly increasing for the past two weeks in anticipation of the earning release, from below 25% to close to 40% now. The gain that comes from 1% IV increase can easily compensate the loss from $1 price drop.

stock is unusually likely to move on ANY day:p

That is not true: 1. Options commission are dirty cheap now. They shouldn't be a reason to prevent you from executing a options trade if you think there is a profit a make. 2. More often than not, the IV drop alone will show you a nice profit, sometime can even compensate the loss from the...

You sell options ( call or put ) when you expect IV to drop soon.

I don't think strategies are that important to be kept as secrets. As a matter of fact, you can find most common used options strategies and play with them in the options lab http://www.TheOptionsLab.com to see their risk/reward based on your expection of the magnitude of the moves. The...

When the run starts ? in next few minutes or in next few years ? Going up by how much ? 1% or 10% ?

The only reason you have made money in gld so far is because gld has been in an uptrend for almost a year. The calendar spread strategy counts little and just give you a false sense of security. The tiny income you received from selling the near term OTM calls will never be enough to compensate...

Chance of making a profit sometime is more important than RR ratio. Deep OTM vertical spread might give you RR up to 20:1 but that does not mean much.

Try spy options. They have the smallest b/a spread.

+1 !!

You bet. Time decay and volatility are two things you must be aware of in options trading. The only way to understand them is through exposure to them, all the seminars in the world won't help you as much.

Got $6500 ? trying to short 3 MO 24 Jan puts naked and you will get more experience. If you get assigned, sell 3 24 Feb calls, if not, keep the profit. Then do this over and over again.

What does the commission look like for a iron condor trade ? do brokers usually charge 4x or 1x ? Thanks,

If you are a long term ( five years or longer ) stock investors, options won't help you much whether you are successful or not. However, if you are short term ( days or weeks ) stock trader and you are very successful, without doubt, options will juice up your return if you use options...

Any trigger event make you select Jan calls ? What are you expecting from now until Jan 21 ?

That is what I pointed out earlier. I prefer percentage is used vs absoluate points. i.e. even for 15 pts differences, 145 vs 130 is not that big difference while 145 vs 100 (a 30% difference) is. So those posts will be more useful if they can provide: 1. Select an underlying that has at...

Have you thought about the correlation between those two trades ?

Do you think the stock will be pumped up before gov sale ?