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The only way to 'decide' rather than guess which one to use is to understand options, how they work, and how to use them. To blindly adopt a strategy because someone on a forum tells you do do so would be very foolish. You are in the best forum. Have a little patience. Look through older...

IB must explain how this can happen. A reply such as it's impossible to predict is based on ignorance. Mark

so what? margin is calculated on risk. Mark

Question: Are you comparing the margin requirements at the same time of day? Why don't you try comparing the daily margin report that's available to you under 'account management' You can go back at look at each days report. Compare those and see if there is a discrepancy. When you...

No one can answer that question without seeing your ENTIRE portfolio. Mark

I find it difficult to believe that this is a serious question. I can tell you right now that it impossible to find anything to scalp that is EASY and where you can readily make DECENT MONEY. And especially when you don't understand options or how they work and what (besides stock price)...

1) Yes, I can complete my orders with two separate orders. I generally do the 1 x 3 x 3 spread and then sell extras as a separate trade. 2) I use IB 3) Portfolio margin worked very well - But it does allow you to carry far more risk than you may want - just because it is available. That...

IB does a LOT of strange things. In my opinion, they are just lazy and don't give a damn. There algorithms are set up the way they want them, and it's too bad if we don't like it. Your situation sounds impossible, but I have seed the incredulous, so the impossible must also occur with IB...

It never ceases to amaze me that the newbie trader - who is first learning about OI - is unwilling to listen to anyone on the topic. I guess it's bliss to assume an OI increase means buyers rather than sellers. It's the same bliss that ignores any potential hedge made by the people who...

Your portfolio has the same volatility as if you had sold the naked put: same strike, same expiration date. That's because the positions are equivalent. As long as covered call remains reasonably ITM - and that means the put would remain OTM - the position has some protection. But it is...

1) The market only knows that you sold 50 calls 2) The market doesn't know who you are and thus, could not care less what you think, or why you sold the options. Ask yourself why you believe there is the slightest possibility that anyone would care? 3) The option market does not know you...

If I were short any October option I would gladly cover it for a penny, and anyone who is short that call is a potential buyer. Who would sell? The longs might sell. MMs long extra 48s and 49s might sell. People who love selling high probability options might sell. Mark

How is that any different from buying the longer term option once the value drops significantly? The fact that you cover the short-term option for a profit is a mirage. You still have a loss in the longer-term option that you conveniently ignore. Mark http://blog.mdwoptions.com

Questions: Why would you want to use such a scanner? Do you truly believe strategy selection is more important than choosing the underlying to trade? IMHO, this is not the path to success. Mark

Agree 100%. But it's your right to be ignorant. The broker should try to educate, not force a trade on its customers. One assignment, followed by a margin call, is a good way to teach a customer a lesson. Not too expensive, and a good experience - not to be forgotten. In addition...

How can you ever be 'sure' the market isn't going to rise rapidly? The idea of the collar is to prevent a disaster - which you also cannot be certain is not imminent. In my view, I don't see why the vast majority would want to take the risk of an open-ended loss? Mark

You MUST be kidding. An option owner has the right to exercise any time. He does not have the obligation to exit a position at the broker's convenience. Anyone who tolerates that requirement is too unsophisticated to be trading options. Mark

DMO knows this, but for the sake of being careful when explaining things to beginners, this example is insurance against bankruptcy. If instead, you take a bearish stance in IBM, those puts are not the puts to buy. Bankruptcy is one thing, but betting on a decline you want to buy a put that...

1) I agree that if they do that to you, change firms immediately. 2) Try this: Tell them that an option gives ITS OWNER the RIGHT. but not the OBLIGATION to exercise the option and that you will not accept the fact that they want to change the conditions of the option contract to suit their...

MTE, SPIN, If that's what John meant, then I disagree with me also. I took 'nerves of steel' to be closing your eyes and hoping for a good outcome. I now see the ambiguity (from my perspective) in John's words - so I'll ask which did you mean? I assume I used the wrong interpretation...