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Here is an actual case of retail option trading. When I wanted to learn about the market 5 years ago I talked to a friend who was making a reasonable amount of $ trading. He traded options because he liked the leverage. He trained me using his system of trading on the IV. We were using IB and...

"There you go. Now you have the data. Please report back to us after you test it." No correlation between your links and what I was talking about. If you have a relevant link I'll look at that. I wasn't talking about whether general market volatility was up or down, I was talking about...

"It sounds like you think that selling high IV does not work because it did not work for you in this case. What makes you think that it does not work in the average case?" I really don't have enough historical info one way or another to make an intelligent comment. I'm only pointing out that...

Yes on American style options, no on European style

"my question is why would you sell a call which gives you unlimited risk when you can buy a put and achieve more or less the same thing " Not true and this kind of thinking is what separates amateur option traders (myself included) from professionals. We pay for the privilege of benefiting...

Going to zero would be extreme unless you were buying options for $10 the day before expiration. But here is a fairly typical trade: I bought a GSF Dec 85 call for $300+, sold it 2 days later for $520, bought it back later in the day for $450, sold it the next day for $520, it went up to $580...

I used to sell puts on the QQQ's and made $ on every trade. I've also bought puts on the Q's thinking I was timing a reversal and have lost $ on every trade over the last 5 years. Of course, we've been in the bull.

"You're safe as long as there's time value. Even if you get assigned on a contract with time value, you can reopen the position and be better off than you were before (which is why it never happens)." Not true. I was short CYD puts with months left on them and was assigned. Why, I don't know...

I read the books and started selling IV as a way to make $. I found out real quickly why the IV was high on the calls I had sold. Stock that had dropped from $127 to $25 turned right around and ran back up. I think selling high IV calls expecting the IV to collapse is the easiest way to take a...

"You can adjust delta by shorting the equivalent shares of stock." I'm confused on this statement. He is short a put and the stock is going down. How will shorting stock and watching that position go against you also have a positive impact on the delta of the put?

Correct and it does happen all the time. Actual example -OSIP closed around $60 one day. After hours they announced FDA approval of a drug they were working on. Next day OSIP opened in the $90. If you happened to be short say 10 of the OSIP 60 calls with a protective stop at $65. The next day...

"so are you saying she had a stop on the amount of $50...but the market ended up stopping her at $800 off instead?" 1. Options only trade during market hours, not in the after hours like SOME stocks do. 2. Maybe you don't understand how the market works with stops. If you short a stock at...

"so it sounds like professional don't daytrade...or do they?" When you see big positions of options go through, They are holding them for longer than a day. No one buys 500 calls on the SPY for a 4 hour trade. You would never get out of the trade at a profit unless there was a huge move in...

" when people talk about hedging....doesn't this lesson the amount of leverage you are putting forth?" Yes it does and the quickest / easiest way to make big $ in the market is to wait until you see a big move coming and buy lots of out of the money calls or puts that eventually become deep...

You don't have to worry about an early exercise on a naked call that you are holding for a short term. The risk is in a big move against you when the market is closed or you are not at your screen. The MM's make their money by selling options because in 4 out of the 5 possible moves in the...

I've posted how I trade out of losing positions before and got ridiculed by a few of the " experts " that seem to thrive on this board. But here is a trade I just did that shows an example that works for me. Was long SGMO with a BE of $17.24. The stock is pulling back today and when it got...

IB.

I can't believe this happened to me twice in the last week. Both times I placed a buy order on a Nok 09 leap at $1300 splitting the spread and neither time was it ever displayed. Last time the stock moved up past my bid and so it was never executed. This time the spread moved down and when the...

I have my IB account set up for trading HK stocks and was thinking about some Alibaba. But recently saw a reference about individual investors not being able to trade the stock until December due to SEC restrictions. Is anyone familiar with this restriction ?

I use Smart with IB and leave the default settings. Recently I placed a buy on some NOK calls at $1300 when the spread was about $20-$30 on each side . My order routed to CBOE and showed as the only bid at that price. I saw orders being filled at $1300 later on, but not mine even though it was...