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It's one thing to read about OE on paper. Another to actually experience it for the 1st time, especially if you are going ITM/OTM on OE day. BTW, what are the chances of getting any options orders executed after stock market closes? Didn't the options market used to stay open for 1 hour after...

When is your hedge fund going to open?

Never confuse a bull market for brains.

Can you postpone until after options expiration?

One of those pharms was PPCO. They are supposed to find out if they get FDA approval on their one big prospect at the end of June (IIRC). PO had it listed as a CC play, but it might be better as a long straddle for July. Kind of expensive, but the stock should move quite a bit either way. I...

Can you point me to where TOS says this?

Yeah, that's what I am seeing. The "best" ones I saw at PowerOptions were stocks like pharms that had a life or death FDA announcement coming soon, or stocks that had recently tanked and might go down a lot more. Too shaky for me. Didn't pull the trigger on any of them. I see RedOption has a...

No, I'm using the Java software. Try emailing them - not sure if you will get a response before Monday.

I see bid=10.50 ask=12.10 last=12.60 Are you looking at their website or the Java based trading software?

Maybe I should start a new thread, but I thought I'd try here first. This has probably also been covered somewhere on this site, but I haven't found it yet. Are premiums from selling LEAPS long term capital gains if the position is held open for at least a year? I have several books...

I think that was a variation on the typical dotcom business plan from the 90's. 1. Take a stupid idea and make a website 2. ?????? 3. Profit! Take this plan to the nearest vulture capitalist, get startup money, do IPO, get rich, stock goes to zero.

He said "virtually" no time decay. If you look at a chart of time decay for a year, it will be nearly flat at the beginning then fall off sharply as it gets close to expiration.

Good call. What do your crystal balls say now?

OK, thanks, I was getting hung up on the put buyer being short the stock. So the put buyer could also lose in this case if the stock gaps up on Monday.

I actually got that from a book I'm reading called "Put Options". The author came to the conclusion after a few years of selling short term puts that the hefty premium on LEAPS offered a lot of room to move to the downside before losing money. He also buys OTM index puts for crash protection. Of...

Seems some people had some trouble with the first part of the original question, so I had to spell it out. My original question was what would happen to the put writer if the shares couldn't be delivered?

That's why I put it in quotes. You are long a put that gets exercised, but you don't own the stock. Maybe you assumed it would expire worthless but popped into the money on at expiration, so you would be short the stock come Monday morning. I was reading on 21centuryinvestoreducation.com...

Does it ever happen that puts that expire ITM don't get assigned because the owner was "naked" at the time (i.e. didn't own the stock) and it is "hard to borrow"? I'm thinking of a stock like OSTK or NFI that is already heavily shorted and some brokers can't even borrow the shares to short. I...

I guess it must work for you. Puts and call? Long or short? Do you usually close them each month, or do you have like 4000 positions open all the time? I'm considering LEAPS. I like the huge premium on selling puts, You get a lot of downside protection at the price of lower annualized yield...

ThinkOrSwim lets you paper trade. I think the initial time is 10 days or two weeks, but I've heard they will give you more time if you ask. I would suggest you paper trade your model before committing real money. Edit: Also TOS lets you start with $100,000 to paper trade. You can see how fast...