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As long as I'm b s ing here, I think that when traders are long a spread, they think they are being conservative and level headed in their trading. There was a thread in this forum about what the poster called "a conservative option strategy". The poster was selling bull credit spreads on...

To beat this horse to death, I have found that if I am long a naked ITM call a month or two out, there will be days when the stock or ETf goes down and I can make $ shorting the underlying without just taking a loss on the call. Whereas if I am long a spread, I tend to sit on my arse with that...

Well I guess my main point was that I somehow thought I was a "better trader" when I moved from naked options to spreads, that I was using more advanced trading techniques etc... Yet, if the goal of trading is to make $ and the ones making the most are the better traders, then I would have been...

"If the correct size of the trade (for your portfolio and risk profile) is buying 10 contracts, then to HEDGE YOUR INVESTMENT, your spread size should be 10 spreads. I never referred to using options to hedge positions in stocks or ETF's. I'm talking about initiating long positions to...

"The intelligent option trader - one who understands risk - knows that you do not buy 30 spreads at $100 each instead of 10 naked long options at $300 each. You buy an equal quantity and invest LESS money. " That's like saying the intelligent trader doesn't allocate the same percentage($)...

"guys - it is VERY hard to arb in the secondary market because you can not create/redeem shares directly to the fund company. " Well here is my arb story- when they 1st started trading options on the VIX I noticed the near month calls were priced higher than the far month calls. I figured it...

"Spreads are used to reduce risk. If you don't like reduced risk, if you prefer to gamble and seek higher profits, then go ahead and buy options. Just understand the difference." Whenever I've brought up this topic I get responses like this. Option traders who think that risking $500 on a...

Just killing time with this observation. In looking over scores of option trades over the last 6 years, I have come to the conclusion that I would have been better off with naked options instead of spreads. I could have kept the risk the same, and would have made much more $. For instance Nov...

My 2 cents and if it's not relevent ignore it. I used to trade options on the OEX and my trading platform had an option price model. When I split the $50 spread and placed my order above what the model indicated, I would usually get filled. At that time, the OEX seemed more cost efficent than...

Here's one I did last week- bought 100 COP at $49.40. Sold the Jan 2010 call with a strike price of 50 for $978. If COP finishes above $50 in Jan 2010, I get paid $5978 for the stock I paid $4940 for. If it doesn't I keep the stock and the $978.

I think the original poster on this was addressing a misconception many of us had. When I was looking to take advantage of what I thought would be a drop in in oil from $135 I bought DUG at $27.50 as I had read several articles recommending it as a " safe" play on a drop in oil prices for those...

"With OCO orders (one cancels the other) or brackets as some brokers call them, once one side gets executed (your target or your stop loss) and a fill report is received by your broker, your broker sends the cancel to Globex for the other order. Failure of their computers to do so would...

"Second of all, trade with stops. Even bracketed OCO stops and you'll be able to define your loss within a few ticks. So you won't have to worry about losing untold sums between breakeven and falling below maintenance margin. So if I traded emini's with stops placed, would the stops be on my...

"The same volatility you experience with the OEX index is more or less the same you will with the S&P 500 index. Emini S&P 500 futures are the most liquid of any derivative. Globex order execution system is 2nd to none. Every point in the index is worth $50 per contract. 4 ticks to a point...

"I just would like to see stock traders with less then the required $25K (which in reality need at least $30K) trade other instruments which don't have these restrictions." Well do me a favor and list them here. I found trading options on the q's and oex about the safest way to learn the...

Well for my 2 cents- I started as a piker with a $5,000 account teaching myself to trade options. I could afford to lose that much and I didn't want to risk more than that. The PDT rule did hinder me from exercising the scalping strategy I was using because when you can only do 3 daytrades a...

Some moves in the market make sense to me but this one doesn't: the prince goes in for another big buy on Citi at the $5 level and Citi tanks the next day on over 1 billion shares trading, only to run up over 100% within a few days. I assume anyone trading millions of shares on a stock has a...

If I set up an account to trade currency in my US broker account and make an initial deposit of my $20,000 USD, when I withdraw the money do I have to withdraw it in USD? Ex. I buy $25,000 worth of CDN, decide to withdraw $15,000 CDN of it. Do I have to convert it back to USD?

Well since you mentioned these were naked puts on indexes and therefore not as risky as stock puts, the 520 puts on the OEX I was trading in September for about $300 finished almost $10,000 in the money in October. ( Unfortunately, I didn't roll them over) The Nov. 520's are currently about...

Dear Lord, Next time please let me be born with my head on my shoulders instead of up my arse.