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Quote from FXWave: Some people actually like to give selflessly as I only wish ordinary people(other than banks/heggies) could have benefited. LOL - not to mention - how many hundreds of times have we heard that line? You guys gotta write a new script. Great entertaining thread.:D

Good going. I was wondering if you held overnight. I've still got my earnings trade - trying to glean a little more - but the option liqudity is gone. Typical of a stock like this.

Historical volatility. HV and IV are measured differently, and HV is the past volatility, IV is a gauge of expected future volatility. HV may have an influence on IV or it may have little impact on IV.

You sell the stock at 25. You have no choice. Your net position in the stock should be your choice. You may offset all or part of the assignment by simply buying shares before expiry. However, if the stock is unshortable or there are margin issues, your broker may buy back the shares...

Assignment is not always undesirable. Short options are not likely subject to early assignment as long as there is time premium in the price. European style options do not have early assignment risk. Regarding any rule of thumb or any aspect of your trading plan - it is entirely up to...

:D Did I hear someone mention free money? Sign me up.

LOL - now that would be a freekin' brilliant ending. Perhaps Mel would add midgets on bicycles swirling around him - you know, to represent his personal demons. With Gibson directing, you wouldn't have to worry about that PC thing.

No kidding. I rarely go to the movies these days, but when I do - you can see or at least feel the formula. It's all kinda the same - they just dress it up differently.

Er, you're talking about football, right? :p

Well, the option market prices volatilty. There is a certain reversion to the mean priced in over time. You can see that farther out puts have an even lower IV. To put it another way - often, price action begets more price action. With todays big drop, we may soon see more big drops or...

About 5.00 (no carry)

Yes, as atticus pointed out. The "trick" for me was that it seemed improbable at first.

credit where credit is due. You are correct. Pretty cool trick. I see how you do that. Thanks.

stock = 47 delta = .5173

:confused: Yes, it's extremely likely that those calls will be exercised if they're worth .11. It doesn't matter what the stock does Monday AM. Assume that the MM exercises and then figure out the rest of his trade. You should be able to see Sunday evening that the shares are gone. Monday...

Yes, there's that pesky pin risk. I'd imagine that some of those calls will be exercised, some won't. Whether or not you get assigned is completely up in the air right now.

Yes, it does make sense. Drawdowns may be so severe that the account blows up. Even if it doesn't, the ability to sell options in future months may be severely impaired. The average won't matter. Your OP is not clear as to the nature of the edge selling ITM calls on major indices. And...

You're quoting the last sale of an ITM option that traded 35 contracts for the day. And the +.50 from the previous day's last sale is not an accurate measure of the change in the option's price. The last B/A was 10.55x10.75 - a more acurate measure of potential pricing. The 11.55 trade...

I think that this one is pretty hard to figure. You've got two pending varialble divs. Then there's that pesky assignment risk. You may be right about that - the premium for the box seems a little on the low side considering the risk - based on previous dividends - so maybe sub -15 is...

This box has the substantial risk that it won't survive ex-div. The 2.17 box example, presumably a price from before the March 30 div. wouldn't have made it as the June 15C should have been exercised - because of the very high div. yield. As long as the div. yield remains high, it...