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May not accept orders that don't end with the number 5 or 0

If you are psychic, it works. You have unlimited downside, How about buying 100 sh of xyz at 25$ and selling a 10$ call @18$. Anything above $10, you lock in the time value of 3$ as your profit (although actual time values are probably even smaller--but a profit is a profit, right?). Your...

Appreciate the explanation. Example I gave was five IB's. So a -50 is really equal one short ES future (future has delta of -1 times the multiplier of 50). I just find it interesting how the change in delta is different with respect to volatility and when the underlying moves above and below the...

I've been trading IB's for a couple of years actually. It is all about money management. The movement of delta or the other Greeks really is a moot point once the trade is placed. I understand the Greeks well, but the difference in rate of change in delta when gamma remains constant puzzles me...

My Underlying: ES (S&P 500 emini) Multiplier: 50 I set up the following long Iron Butterfly (IB): Long May 1125P Short May 1195P Short May 1195C Long May 1245C When initially placed, delta was zero. Of course, gamma was negative, vega negative and theta positive. As the...

Most brokers only offer RAN for futures option trading. For futures, the broker will typically offer a superior platform.

You cannot trade ANY options spreads. RAN does not update in real time--you have to constantly click the refresh button. You do not even know if/when you trades are accepted or canceled or executed, for the system is delayed. Quotes are delayed. All portfolio data is delayed. Believe me, I...

This has never happened but I am curious. Suppose 4:15PM EST, on the third Friday of the month (options expiration day) arrives, and all the ES (s&p 500 emini) options expire. Suppose one has a short option ITM. Obviously, this option will be assigned. Is the assignment and reception of the...

Using RAN to trade futures options is like using a horse and buggy to go to the store. Phoning in orders is just as dated. I have never had a problem using IB TWS to trade any futures options combination.

Why not buy Pfizer stock (to collect the dividend) and sell an OTM LEAP?

Couple of ways I like to hedge. One, buy high quality, dividend paying stock. Then sell leaps (calls). For example, let's assume that J&J is selling for 50. I would buy 100 shares and sell 1 LEAP at 60. You're using the premium and the dividend as a hedge. You can also put on a collar: buy 100...

If the gurus were RIA's and CTA's managing other people's money, then they would have to disclose-with proof-their performances, drawdowns, etc. There is no reason for anyone to have to hide behind embellishments.

Take it from me: Naked option selling is for the birds. All futures brokers use SPAN margin; so margin requirements are the same everywhere. Margin requirements are two and a half times greater than an equivalent bull put spread.

This is the Bible. Buy it. Keep it. Read it over and over. I do and I have been trading options professionally for six years.

That's the great thing about options: You can profit, if short, even if the underlying doesn't move. But if volatility rises, then the prices may rise, depending on time decay.

Your options expired so that is why your account shows "loss." your options are automatically exercised. On Sunday the equivalent in stock will show up in your account. You have to have the cash to purchase the shares (50% with margin). If you have no intention of owning the stock, then you...

Fear > Greed. Now everyone has their finger on the buy put/sell underlying button; not to mention the sell stops. That is why the speed of declines is so fast.

For my iron butterflies, I use the ES (s&p 500 emini futures). Of course we want swings, so all short options can be exited with a profit. In the case where there are no swings, then IB's are a challenge--same with IC's. I like to maintain a delta neutral position to start. I like to adjust...

I would agree with this. Seems that this fraction approaches zero as time passes. I have found that the effects of gamma far outweigh the effects of theta the week of expiration. Therefore, I my short optionshahve very little time value left, I exit them (typically the Friday or Monday before...

I did the same. Has an Iron Butterfly working in April using the ES. Took the profit on the short puts and took the loss on the short calls/long calls. Even got some money back on the long puts. Best part, I used long ES futures to further hedge and cahsed them out with a slight profit...