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Thanks for the reply MacBookProHo. I was paper trading the August 19th 400 call for SPY earlier this morning. The price when I checked was 7.05. The Bid was 7.01 and the Ask was 7.06. Is it ok to put a Limit order in for 7.05 (70 contracts)? Thanks

Hi guys, I'm interested in trading long puts and calls. I'm only trading high volume options contracts (typically for SPY or QQQ). Some of these contracts have a volume figure of over 5,000 contracts a day. My question to you: if I place a trade at 9:31am EST using a limit order for 70...

Hi guys, do any of you have any experience with Eoption.com for option trading? They say they accept international customers and accept solicitated applications from Canada. They have cheap commissions. What do you guys think? Thanks

Hi, I've been paper trading bullish/bearish butterfly spreads on the QQQ and SPY for the past year. I would like to open up a real margin account with Level III approval for spread trading. The broker asks "how many years have you been trading options?" I have no real life experience trading...

Hi guys, I've researching Trader Vic's 123 trend change on daily charts. Where do you recommend putting the stop loss? Trader vic doesn't mention this in his book. Would it be 1 tick below/above step 2 of the 123 trend change? Thanks

Thanks for the reply. What about stock options?

Hi all, Is it possible to day trade stock options? If so, does the minimum required deposit of $25,000 for day trading still apply? Thanks

Thanks for the input taowave. Is there any advantage to trading a bullish butterfly over a bull call spread?

Hi all, when I learned about bullish butterflies, I learned that the spread should be OTM. It allows you to take a cheap position without risking too much capital. Is there ever a situation where it makes sense to initiate the bullish butterfly spread where the long call at the lower-strike...

Hi guys, I'm new to options trading. I'm looking at the October 15 expiring 270/ 290/330 broken wing butterfly for UPST with calls. This is a credit spread. The mid is -1. The max payout is $1960 and the max loss is $2040. The current price of UPST is $266.52. Would you say a broken wing...

Is there any advantage to trading a bull butterfly spread over a bull call spread? Is it cheaper to trade? For instance, I'm looking at the 235/245/255 Nov 19 bullish butterfly for NVDA. Its max cost is $195 and its max return is $805. Yet a Nov 19 expiring 235/245 bull call spread for NVDA...

Hi all, I've been paper trading stocks for a while now with moderate success. After reading the Market Wizard books, I've been keen on becoming a money manager. Some traders make a lot of money through a management fee and performance fee. If I want to become a wealthy money manager, should I...

That's a great answer, thanks.

Hi all, I'm new to IB and I would like to set a 7% stop loss below my purchase price. Can you please tell me how to do this? I see there's a STP order and a MIT order. Which one do I choose to set a GTC stop loss order? Thanks

The problem I've having with PMCCs is that leaps have very wide spreads. I was looking at the Jan 20 2023 165 LEAP the other day for NVDA and the bid was 40.60 and the offer was 45.50. Is this too wide? I plan to sell the LEAP (STC) once the short call expires.

Thanks for the reply taowave. I'm not taking delta into account. I will trade the same number of spreads regardless of delta. I've been studying Gavin McMaster's column on bull put spreads at Investor's Business Daily and he never mentions delta. He does talk about delta for poor man's covered...

Thank you for the heads up BKR88. I'm with Interactive Brokers and unfortunately it doesn't tell me the bid, ask and mid price is right now. I'm guessing it's because the market is closed. I will check tomorrow when the market opens.

Hi all, This is my first entry for my trading journal. I'm new to options trading. I'm thinking of selling a bull put spread for NVDA. I'm bullish on NVDA for fundamental and technical reasons. I believe the stock will rise 20-25% over the next few months. NVDA just broke out of a cup with...

Thanks for the tips taowave. A poor man's covered call is a diagonal spread. Buy one deep ITM call with an expiration date far away (eg Jan 2022). This reduces the effect of theta somewhat. And then sell an OTM call with a closer expiration date for income (eg Oct 2021). This is basically like...

Thanks for the reply taowave. I've been looking at poor man's covered calls (PMCC) lately as a cheaper alternative to regular covered calls. Do you still look for tight spreads for the long, deep ITM call that has an expiration date far away? I find that the long call in a PMCC usually has...