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An easy implementable solution by IB is setting specific liquidate flags for each of your positions. Right now theres just one flag avaible, the set liquidate last. Basically, if you are able to exactly specify which position to liquidate first, then which second, then which third, that would...

Okay heres a thought exercise: Maybe the problem was he didn't have the $11400 required to become exercised per option? For example for the SPy option, The program calculated he needed 16*11400 is 160k+ and maybe he had only 50k in his account, and when the bid just disappeared it was as if he...

OHHHH I GET IT NOW You have to forgive me, I am only since last week interested in options. I mean he should make $500 an option, not lose $500 an option with the drop yesterday since its a bearish bet. Well thats weird.

Warren Buffett pressed B instead of M

they won.t you will probably take it up your you know what. busted trades always screw people.:p :cool: :D

Theres no justification if this was manual liquidation. However like you said auto-liquidation doesnt work like that. Auto-liquidation doesnt use common sense. If the 114 put is worth a trillion dollar, and 119 is worth 0$, then when it auto-liquidates nothing can stop you from getting 1...

IB is not wrong. You were short 114 and long 119 puts. In rational markets these cancel out. But what if an irrational market causes your short 114 to be worth much more then the 119 puts? Theoretically the difference is 5 SPY points. But practically, the risk is 119 SPY points. The...

I'm never writing naked puts again

Thanks people for advice, but I think reading books is waste of time. I don't think learning about macro-economics will make me rich. If that was so, why aren't the writers of these books billionaires? By the way, if the VIX is high do premiums get juicier? I noticed the market is falling...

It's not about encouraging or discouraging. THE OP wrote "I have about 5k that I'm will to risk to see if trading is the future path for me, I strongly believe it is so I am willing to take the risk." Then there's people telling him blowing-up 5k is nothing. The problem is the OP hasn't...

forex is the whole reason i moved away from stops. Too many stop hunters. Now Trade without stops.:D

how do you determine undervalution?

I just wrote a few puts i am short puts now. But the premium isnt so juicy. How do I get juicy premiums? I looked at optionstrader and the indicators. One is called option implied volatility. When implied volatility is high, does that mean premiums are more juicy? Also if the volume change is...

A gamble is something like buying GS and BP otm puts with expiration in a few years.

Gamble on calls or puts. Even if you blow your account trading your trade plan, it will not help you. Look at me for example. I blew up 2 accounts and am not an inch wiser. The people who say that blow-ups make you learn are stupid. It's like saying with same analogy as earlier posters...

Is there something called trading addiction? I think so. It means there's people when they don't trade, there hands shake. They need to trade, not for living, but for their life. If they don't trade they fall into depression. The danger is real. Trading addiction is as dangerous as drugs...

if youre not sure whether a stock will rise or drop, but pays steady dividends, covered calls and writing puts are the way to go.

this is a myth. the stock goes down not becoes the company is worth less. Its because other people dont want to pay more. the bid and ask shift thats all. the cash is real and tangible, unlike unrealized capital gains. the cash goes into your hand so you can invest it again. dividends are truly...

sell puts on consistent dividend stocks

In a real free market you can make an Ipad knockoff named epad and get away with it. Since we have anti-trust laws, brand protection laws (USA companies protection), its not truly a free market.