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I suggest you use the Web to do the research. As someone mentioned, there is enough free stuff. You must obtain a THOROUGH understanding of the options basics (calls, puts, combinations/spreads, and the greeks (delta, gamma, theta, and vega) before worrying about strategy. Then you need to...

This is a great question, for the trader needs to understand the dynamics of option trading. It is NOT about waiting until expiration. You need to follow your trades daily and make adjustments as needed. Again, forget about expiration. For example, suppose the market has been trading...

I have gone back and taken a look at my "market-neutral" trades (short straddles, iron butterflies, IC's). I looked at the greeks (delta, gamma, volatility, and theta). All of them show negative volatility and positive theta. Interestingly, deltas and gamma are negative (if the underlying...

Mark is correct regarding the OEX. When I first embarked on my naked put selling several years ago, I used the OEX as my underlying. It was a nightmare. One, it was very volatile. Two, the margin required was high compared to the ES FOP's. You do have to be careful foolling around with...

Depends on the margin requirements of the individual broker. Your math is off a little. If you wish to cover the put completely with cash, your cash requirement is 50*100*130 or $650,000.00. Most brokers will require 50% of that or $325,000.00. Some like IB allow even less. This is shorting...

FWIW: I have done business through IB for over five years, and rarely had a problem. The typical problem never had anything to do with money or trades. I have had account sizes ranging from $25,000 to $120,000.00, and the rare problems were the same. I trade futures options on the ES...

Mark's comments are appropriate. I have also traded short straddles. With lower IV (18-25), I found them to be profitable. Compared to strangles, though, at higher IV, you do not get as much protection (the legs of the strangle are further from the underlying than the total premiums...

I have found the best way is to set up the spread is using the "combo feature." Suppose I want to do a bear call spread. I right-click on an empty row and select "general combo." Enter at the top your underlying (ticker and exchange--if doing stock options, choose smart." Then select the...

From my experience, I am not a big fan of rolling up OR rolling down. Generally, I would let the shares be called away if expiration day is close at hand. Otherwise, I close out both the long shares and the short call and take my profit. If the stock drops, admit your mistake, and close out...

I wen through the process in March. First, the option expires in the money and it is automatically exercised. You will be charged a commission for the exercised option. Then you will be charged a commission for selling your existing ES contracts. You will be flat. The fee si the same as a...

I called the GLOBEX control center, and the analyst was very helpful. Here is why a "bull put spread" or a "bear call spread" wasn't acknowledged by Globex: CME globex is in the process of eliminating Exchange-Defined Options Strategies (EDS). CME Group currently prelists approximately...

Found the "problem." I called the GLOBEX control center, and the analyst was very helpful. Here is why my "bull put spread" wasn't acknowledged: CME globex is in the process of eliminating Exchange-Defined Options Strategies (EDS). CME Group currently prelists approximately 360,000 option...

Best way to play earnings, IMHO, is to look for companies that announce earnings the week of options expiration. For example, suppose AAPL will announce earnings on the Monday evening of that week. Purchase an ATM or slightly OTM call if you expect AAPL to beat. If, on Tuesday, you get upward...

Happened again at the close yesterday. Contacted IB who contacted Globex. While waiting, I placed an order at 4:35PM EST so that IB and Globex could look at it. During the chat, Globex did acknowledge the order and the indicator turned green. So, now, it has been two sessions at the close...

From what I have read: MM typically are sellers of puts, buyers of calls, and they hedge by shortselling the underlying. (They sell puts, for the public typically buys puts for portfolio insurance. they typically buy calls, for the speculator does covered calls.) If the market rises or is...

All is well now. Relogged in for the 6PM ST session, and transmitted some trades and the green light appeared instantaneously. Same with this morning. I have been with IB, on and off, for over five years. I can't really complain.

My account window was fine and accurate. I had plenty of available funds. I think it was a glitch. I did speak with someone at IB, and he believes it was a glitch, for he didn't see any problems with my account or my order. He didn't tell me that he pulled up my audit trail, so I did it...