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I wonder what would have happened if the markets were closed through expiration day? Extended expiration? SOL? (Looking at the calendar, expiration would have been 9/22/01 and I think the markets had reopened by then.)

It looks like they rate 80 advisory services. They charge a subscription fee ($99/month for one month). Anyone tried them? I'm thinking it might be worth 1 month to see their results.

Can you tell us your thinking? Or maybe you don't want all of us jumping in on your trades.

No, not a single stock. I'm talking about shorting put options on maybe 20 DJIA stocks, the ones with the fattest premiums. There would be a high, but not 100% correlation with the DIA. The majority would only need to stay about level. But like the article that segv posted, there are...

Unfortunately the market doesn't move according to what I think. :(

The last paragraph of the article sums it up pretty well: "All in all, there are easier and less complex ways of making more money with less effort." OK, so let's say you had a large amount of money (e.g. $500,000) and you wanted to generate about 1-2% per month for income, and also preserve...

Thanks for the input. To answer bvam1, one reason would be to save on commissions. Instead of buying maybe 20 individual puts you only buy one DIA put. Steve, I'll check out the books you mentioned. Maybe I'll paper trade this for a while.

I'm looking for opinions on this strategy: Pick stocks out of the 30 DJIA with the fattest premiums. I think there are about 20-25 with premiums large enough to make it worthwhile. Sell just OTM naked puts on them. For protection buy DIA puts. I would need to work out some formula for...

Care to give us some specifics?

In general, if you are selling options you go for shorter expiration, if you are buying you get more value for longer expiration. In silver futures you don't have a time limit, is that right? You just have to be able to sweat it out if there is a move against you?

Actually my question was specifically if this works on a steadily rising security if you keep getting called and repurchasing the same one over and over again. It would seem at first glance that you would be spending all your profits to buy it again. I was asking because I saw a book on...

It must be. Schwab told me so, plus they let you do it in an IRA. :) :) :) :eek:

I'm sure this has been discussed somewhere but I haven't seen it. Let's say you decide on a strategy to write covered calls on the QQQQ. You buy them today at 39.40 and sell Jun 40 calls at .60. In June it has gone to 40.50 so you get called. You got the premium of .60 plus .60 on the...

Dang. I just thought of something. The EBAY trade was supposed to be a learning experience, which it was in a way. But looking back I could have done better. I should have closed 5 contracts and left 5 open to expiration. That way I would get the experience of have ITM contracts expire.

(I went back to edit the post, but I guess I waited too long.) I was going to change it to "good or bad", after my EBAY experience. In fact, that's one of the reasons I did the spread with EBAY. I checked all the usual suspects, MSFT, GE, IBM, INTC, GOOG, YHOO, etc. They all had low premiums...

I closed it for a loss. I don't plan to trade EBAY in the near future. I guess the lesson is don't expect a stock that has been dropping like a rock to stop for a week until your options expire. Like I mentioned earlier I was looking (hoping) for support around 32. Heck, it will probably climb...

Yeah, maybe I should close it. I was looking for support at around 32. It started up this morning then tanked. Thanks.

I mentioned this on another thread I started: http://www.elitetrader.com/vb/showthread.php?s=&threadid=69124 I didn't know whether to reply to that thread or start a new one. I thought I might get more input on a new thread. To recap: I wrote a 32.50/30 put credit spread on EBAY for...

Thanks for the replies. I think I will sign up for the free trial (using the link from Steve's site in case he gets any points for it). Maybe Elite Trader should have a section for web service reviews, in addition to the broker and software reviews.

I did a search and only found a few references from like 2003. They seemed generally favorable. Anyone have any current opinions? Any recommendations for other reasonable priced subscription services? I'm not looking for speculation, just nice constant income. (I ran across one...