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He might call it something else, but I'm sure he does discuss them.

I agree the market is pretty efficient. That is why I have never gone along with the "blindly sell theta" crowd. One has to have a correct idea about direction of the UL or direction of volatility to make money.

IMHO, there are no inexpensive hedges, and the best hedge is not to get too big. A long call is a hedge in itself, yes? It could be considered a substitute for buying a stock and a put. What to do in terms of taking profit depends on the characteristics of your system. For example, when I...

ironchef, What do you want to do? Protect long options? Let me understand your objective better.

You won't get your 1-2x max credit in 1987. You will get the market price, which may be 10 times the credit you received.

Agree with the above: best stop is another (long) option, or keeping your size small. Go back and look at October 16 and October 19 of 1987. The Dow opened down 9% and fell another 15% during the day. You can't stop loss your way out of that. You either need the cash when they put...

I don't believe the previous poster is trying to say that people can cure their own diseases, but rather that the private sector can deal with these things without help from government. When there is demand and supply, the market regulates prices, which is not what's happening now. We need...

Hep C is also transmissible by "standard" sex, though it's less common.

Thank you. Yes, we can do this, although I doubt we will. But it might not involve treating everyone for everything. There just isn't that much money. Finally, whether any of you want to hear it or not, people are no more entitled to get free access to a $100k+ treatment than they are to...

You will lose on theta and volatility by buying an ATM option. Buying an OTM option is basically insurance or gambling. It sounds like you want a proxy for the underlying, with some leverage. That is the deep ITM option. If the bid-ask spread is too wide (I have no idea what the DAX is...

How about an ATM synthetic?

When it comes to borrowing, trading and investing are different. Yes, it is risky to borrow money to trade. But an investment is something one holds for a long period of time. As an investor, suppose I buy shares of KO, a company with a 50+ year record of paying a dividend that currently...

Same here. Worked and saved it. I was very fortunate to be working and saving in the late 1990s and to lose only 25% of my account in the downturn in 2000-2002. Whenever you trade something that is not your own, there are going to be pursestrings/responsibilities.

Yes, you can sell a covered call in an IB cash account

Nice post. Yes, get what you want out of life. Good place to focus.

Just in the crudest sense, it makes sense that trading stocks on the long side would be a good gig over the long term. After all, equities represent real companies that invent new things and make real money, not just speculations about the direction of monetary flow or supplies of commodities...

It depends what you are doing. In general, it's often better to sell and start over. You can sell part of your position.

They want you to trade so they can make money. They like to hear themselves talk. They are sometimes amusing. That is it. It is a place to be entertained, but certainly no place to try to actually learn to trade options. For that, you gotta read and paper trade. Most people are too lazy...

Jinxu, I don't understand why you want to trade if you think it is gambling. If you know how to trade, it should not be gambling.

If you start small, you have no emotions. People play with larger amounts than they are comfortable with. As soon as they have a bad patch, they markedly decrease their capital at risk. Sure as shit the next time period is profitable, but they are too scared to partake. There is nothing wrong...