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No. All that is already built into the stock price. Mark

You have it wrong. Most of the options that are in the money are closed prior to expiration. The longs sell and the shorts buy. Thus, if the number of options that ever existed for a given stock and expiration period is 1,000, and if 400 of them would be ITM at expiration, it's very...

The danger is that - even though you get a good result and your short-term options expire worthless, it's possible that your long options will lose more than you gain. The market price of those December options depends to a great deal on implied volatility. OK, that means nothing to you now...

those damned Olympics had better wind up in Rio and not in my town! Mark

write to options@theocc.com Mark

The 'trap' is believing your first sentence has any basis in reality. Mark

Diagonal backspread. Why does it matter what it's called? Risk is an IV collapse and your long options shrink in value. Mark

If you ignore what an option price 'should' be, you are doomed to failure. I'm not talking about a situation is which there is extra/supply demand and an option gets out of line. I'm referring to day in/day out buying and selling. If you overpay/undersell, you have no chance. Mark

Correct. Imagine what would happen if the order were rejected and by the time the customer can be notified, the price is back up to 18. Who would be willing eat the error for not filling the order? No one on this planet. Mark

Time decay is not linear. Look at Black-Scholes equation and you will see that the time value of an options is related to the square root of time. Thus, the time value in the price of an option is worth twice as much when the time to expiration is 4x as long. Mark

No he cannot The MM cannot reject the order. Where do you get such ideas? The MM is not supposed to see the customer order, unless it cannot be instantly filled when it reaches the pit. The MM is filled electronically because the offer is lower than the bid and that's that. Mark

1) It is very wrong to believe that you must - or even that you should - wait 6 weeks. You may wait until the options expire, but that is not necessarily a good idea. 2) You may close this spread any time you are satisfied with the profit. Yes, you may be leaving some money on the table, but...

How is it free? Is it your opinion the stock cannot move lower, or is it an absolutely guaranteed fact? Mark

People like you ar out to destroy America. Always looking to sue somebody. Never willing to accept blame for anything. No you have no action - unless it was a limit order to SELL They bought it for you at a fantastic price. They are not mind-readers. They have no way of knowing you...

Mark

I doubt brokes will accept (although I have never tried it) DO NOT exercise instructions before the market clsoes on expiration Friday. Try to sell the options first, then call right after the bell. Better to sell the options. Never give up on that. Mark

The Greeks serve one purpose only - but it's a vital purpose. Greeks measure risk. If the risk metrics of the trade are ok with you, there is no need to do anything. If not, you can reduce risk. That's it in a nutshell. Mark

You have it exactly right. It the percentage return that matters, not the total dollars. If you are a profitable trader, your account will grow and the total dollars will increase. In addition, if you act prudently and save money every month (pay yourself first), you can keep adding...

1099 is not appropriate for capital gains and losses. Options are reported on Schedule D. Mark

Mark