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I didn't mean to imply that ATM calls were necessary but maybe 15 or 17.5 strike instead of 20 strike. Anyway, I understand what you are getting at, and I think it is as good (or maybe a bit better) as any other black swan hedge. I'm not trying to make waves. I think it is definitely worth a...

I was talking about VIX not VXN. It is my understanding that VIX was around during 9-11, there just wasn't options trading on it. The chart for VIX only shows a 15-point jump, then a pullback, and another 15-point jump again. Is this not correct?

Point well taken.:) VIX options are a different beast. However, the APR 20 puts are priced very close to intrinsic and acting much more like equity/index options. The interesting thing is what you noted in your edit. ITM puts decrease in price as time to expiry increase. I've never seen...

Today's Action Cont. BTC 1 RIMM APR 85/90c @ 0.40 Year to Date P/L Account Value: $11,115.50 YTD Gross P/L: 1,330.00 YTD Commiss: 214.50 YTD Net P/L: 1,115.50 YTD % P/L: 11.2% I had an order in to buy back the RIMM bear call @ 0.40 that was...

You guys have a pretty good discussion going and I don't want to interrupt, but..... From where I stand, I've never seen a situation with options that an ITM strike with no bids couldn't still be sold if you drop your ask under intrinsic value. I have been in a couple situations where after...

I think for me what it boils down to is that it is a fairly decent way to exit your dangerous positions the day of (or the day after) a black swan event. This is not a hold until expiration and come out with a minimal loss type of hedge. If the crash happened with say 4 weeks to expiration, we...

Personally, I think options are the best way to start. I'm living proof of that. The problem is that I can't advise some average Joe to jump into options trading. I'm the type of person that loves to study and become an expert in something. I'm talking about the kind of person that would buy...

Today's Action STO 3 SPX APR 1240/1250p @ 0.30 Year to Date P/L Account Value: $11,098.50 YTD Gross P/L: 1,310.00 YTD Commiss: 211.50 YTD Net P/L: 1,098.50 YTD % P/L: 11.0%

I still have the bear call on RIMM that I rolled from MAR. They release earnings tomorrow and as far as I'm concerned, everything is up in the air for them. I've decided to hold the position through the release. If the underlying rallies after the announcement then I plan on reversing the...

It is depedant on what direction you want to take with your career. That is why I used the qualifying statement, "for what I do". Because my career path is not that of a solo trader. A good trader can make some money. A good asset manager can make some money. A good invesment advisor can...

Today's Action STO 3 SPX APR 1340/1350c @ 0.95 Year to Date P/L Account Value: $11,107.50 YTD Gross P/L: 1,310.00 YTD Commiss: 202.50 YTD Net P/L: 1,107.50 YTD % P/L: 11.1%

I think the answer to this question was unanimous. :D

For a number of reasons I actually opted not to take a position just yet. Now that it is above the 20SMA I am again considering it, using that same support as the basis for my trade.

Took the opportunity as we approached 1310 to open a few more SPX bear calls. I couldn't get filled with a spread limit so I legged into this one and got the 1340/1350 @ 0.95 If the resistance holds again and we dip down, I will again be looking to finish off the IC with a bull put.

Interesting.... one of the most commonly asked questions on ET. "How do I attract OPM?" Yet a good part of the members here trade specifically because they don't need a certification to do it. Once a trader gets a little bit of experience, he wants to start making money off of other...

You really are going to have to run multiple tests with the different variables. I would recommend first determining what your forecast is. IOW, how much of an IV increase and when will it happen. That will determine your profit objective. After that you should analyze all the "what if"...

The obvious questions are; Is it a value fund? Is it a growth fund? How does the fund describe it's strategy? There are many reasons tha a fund would add OSTK to its portfolio. If you are investing in funds, you are probably looking for long term gains. Most investors in that fund would...

Even though this question really has nothing to do with options, I'll throw in my 2 cents. The chart is a classic double bottom. The buying action on 3/13 looks like it triggered a lot of short covering which only added fuel to the fire. Then predictably, the previous strong support...

This whipsaw action of SPX is kind of bitter sweet. On the one hand, my current position is loving it. On the other hand, I want to increase the size of the position and I'm not getting a good chance. I'd considered adding some bear calls today, but I was having all sorts of server problems...

My experience has been that it is easier to get filled on a 10-point spread, but not at lineraly increasing credits. It only makes sense that the credits would not be linearly increasing. If I were a market maker I would be much more likely to give someone a 0.25 credit on a 5-point spread...