Search results

Owe $162.50 x 600 = $97,500 Receive $161.50 x 600 = $96,900 I would lose $600 but likely still have the remaining 2 legs open. How's my math? ;)

Thank you for your reply. Exercising my long option would require $96,900 ($161.5 x 600), which I do not have available. So in this scenario, it looks like this transaction should be avoided knowing that although it's rare for a put purchased to get exercised early, the buyer could theoretically...

Looking at buying an Iron Condor structured: Buy 161.5 Put x6 Sell 162.5 Put x6 Sell 172.5 Call x6 Buy 173.5 Call x6 Has low volatility (about 17% overall), POP at 52%, P50 at 64% Delta +5.00 Max Gain +$246 Max Loss -$354 Underlying @ $167 Question I have is, can a buyer of the $162.5 x6 Put...

OK, I appreciate the reply. The original option ticker was TIVO and now appears as XPER. Spent about an hour on the phone with eTrade trying to get a straight answer. They looked up the OCC and as best they know, instead of option on 5000 shares, I have option on 2250 due to the merger. The...

I purchased a total of 50 $9.00 July calls which would, of course, be the right to purchase 5000 shares at that strike price prior to expiration. With the shares being reassigned due to merger, eTrade explained to me that I now have 50 contracts but each contract is for 45.5 shares rather than...

Thanks.

Looking at an option call spread with decent metrics but I don't know what is a good percentage spread in Bid/Ask to follow. In this example buying, B/A is $4.60 and $4.15 or a spread of $0.45, (0.45 / 4.15) x 100 = 10.84% to buy and, Selling B/A is $3.20 and $3.65 also a spread of $0.45 (0.45 /...

As Larry the Cable Guy has said ..."That's some scary s*** right there." Here's what I learned this week going forward .... Look for: Higher Implied Volatility Volume greater than 200 A narrow spread of Bid/Ask price High Open Interest Underlying asset price above $5 (actually got conflicting...

Yikes ...McMillian $99 in paperback. May have to swing by the library this afternoon.

I appreciate your reply. I have a book OTW from Amazon and will be reading while I'm away next week.

How wide? .... Dunno, didn't consider it. Dazed and confused. Now I know better. Market or limit? Limit at mid-point Thanks for your help. This forum certainly has good people willing to assist/mentor. My job is now to not screw myself with stupid trades again.

Thank you. Lesson learned. Thankfully it was cheap.

Already looking at TastyWorks. Glanced at Tradestation. I'll likely have to eliminate some positions on eTrade to fund a new account. Is there an overall consensus on the best product? I'm an active but small dollar amount trader. Retirement hobby. Thank you your reply and help. It is appreciated.

Yeah. Like playing baseball with a blindfold. BTW, BlueWaterSailor ... I'm retired Navy 1967 - 2002. E1 to O6. Loved most of it. May have to slow transition to another broker as eTrade seems limited in its resources/information.

By spreads you mean difference between Ask and Bid, right? And IV is Implied Volatility. I'm sure there are web sites that will find this (IV) for me easier than I can see it on eTrade. Nothing here:

Glad I asked. Here's more info. Which should I be paying attention to?

Tell me please if this information reflects the trade volume. The numbers following the price of Bid and Ask. Thanks again for help.

Yes, thanks for this.

Here's an example of my just poking around. Assuming there is some upward momentum, would this be a reasonable sample of what to look for? MGM $21 strike Call BID 2.78 x 251 (assuming this is the volume) and ASK 2.98 x 189 Not too wide a spread in Bid/Ask and both volumes are at or near 200...

Hmmm ... sorry I don't follow. Do you mean that bid and ask volumes should be close to each other so that the bids don't grossly outweigh the asks when it comes time to sell? I understand that I should look for bid and ask prices closer to each other than I have been doing.