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Give the guy a break. He's just learning and using play money. Real money really focuses the mind and intensifies the learning curve, but it will also cost real money, too! Playing with paper money is a good way to get a basic feel for things. However, as a real trader myself in both of...

Grinder, Those OTM wings are long (bought), not sold, which does not increase the margin requirements. In fact, it should reduce them compared to straddles. They also give a possibility of profiting in the event of a black swan, or in the unlikely event of a "melt up" (or whatever you might...

My comment on the ROI is that the return that counts is the overall return on the total capital in the account. Many of my individual spreads either gain 60% or something like that or lose 50% or so. Individually, in isolation, some of them may sound wonderful or horrible depending on...

Of course, AAPL could take a spill. The previous poster is correct-- max gain = 140, and max possible loss = 360.

emini wap-wap--- Were you selling puts last October and November???

maninjapan, Below is an example of locking in a profit, while still looking for more. I will be using a simple vertical spread because it is simpler, but the BWB adjustment is relatively similar and you will get the idea of how it is done from the example, I think. You start off with...

Walt, you and I had previous discussions about a double broken wing butterfly which relates to this discussion as there are essentially three kinds of unbalanced flies-- (Style A) which operates with the usual 1-2-1 ratios combined with uneven strikes like 550/560/580-- (Style B) which uses...

Mark, Ignore the naysayers. You're a credit to the options business, and it's obvious you know how to make money at it. I do many things in a fairly similar way to you and it works just fine. You and I have not always agreed on every detail, but I respect your opinions, and you back them...

Spin, TOS gives you all the greeks for each position automatically. I often have multiple legs, and it puts them all together in a very easy to digest format. On the other hand, I also agree that simpler is generally better. More legs can be a pain in the neck to manage without giving much...

erol-- interesting thought, but... I don't see it as much of a hedge short term against a violent move in either direction. You might get lucky and get it for next to no cost, but there will probably be a modest net debit due to slippage and the structure of butterfly risks (Charles Cottle...

I'd say the RUT, SPX and NDX are all good choices for this try. Let us know exactly what you're trying and how it goes. Here is a suggested play on RUT that looks a bit interesting without being a major killer-- Puts-- +1 550 -2 540 +1 520 Calls +1 660 -2 670...

Walt, I have thought about using a double BWB and think there are situations where it would work just fine. You either end up heading towards the sweet spot or you are in the wrong spot. On the other hand, if nothing happens, you earn a little for your trouble. So, if the market moves...

penngator, Mark is right. SPX is the way to go. The commissions savings are substantial. If you pay $0.75 per option ( a decent and fairly competitive rate), then 50 options cost you 37.50 in and out for $75 in commissions total; 5 SPX will cost you $3.75 both ways or $7.50 in total...

JJacks-- you are right. The brokers have a financial requirement and a practical business responsibility to have correct information. If they don't, they will be subject to penalties, lose customers rapidly, or possibly even be sued. Yahoo has no such pressure.

Yahoo's option data has some problems. It often includes two series within the same chain without having any way of identifying the difference between the two besides the symbol chain which most people have no idea how to read. For those who are interested, I think that the CBOE has a guide...

Why do you think we travel to Texas, California, Arizona, or Hawaii in the winter? By the way, the temperatures this week are predicted to be in the 80's every day. Our summers are actually quite pleasant, and the mountains are beautiful and only an hour away.

Covertibility, I'm not sure if Canada is what you define as a socialist country, but I will tell you this much. I live in Calgary, Alberta and I have travelled in most of the states in the US and I have been in almost every major city in the United States except for those in the extreme...

I must say that I am enjoying the conversation--even though I have been away from it for a few days. It's always good to have some sharp guys have a responsible debate without engaging in the mud slinging that so often ruins threads. I guess its time for a clarification on my meaning. It...

drcha, More liquidity helps, no question about it. Nevertheless, I had pretty good success getting filled on the NDX most of the time, and last week I was filled on the SPX at midpoint twice within seconds. Overall, the indexes have good liquidity. I'd worry more on individual stocks...

Optionspoet has a very good point. With CTM options, the action is much faster. Even a 10 point move can have spectacular results, both good and bad. I'd say playing CTM is better left for those who can watch and adjust at any moment. Otherwise, it's easier to deal with further OTM...