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The buyer of an option may sell or exercise the option at any time. The option will also be automatically exercised if it is ITM at the time of expiration. The writer of an option may be assigned at any time (as determined by the buyer) and have to deliver their shares (if a call was...

For an interesting read on what it is actually like to survive a breakdown of society, try this: http://www.amazon.com/gp/product/9870563457/ref=oss_T15_product For an interesting read on a plausible situation that the TEOTWAWKI crowd likes to crow about, try Lucifer's Hammer by Larry...

So you've entered at 37, it moves to 42, you go to about BE and it stops you out. What prevents you from re-entering when it hits 37 with your same stop? You liked it before at 37, so unless your analysis has changed, why not jump back in? You're basically back at square one and out 2...

This may also help you lose less money than you are already going to lose. Amazingly enough, I believe in this case selling everything is not the best way to cut your losses at this point. This assumes you can sell spreads in your account. My thoughts, from most conservative to riskiest...

Unless you are selling time decay (i.e: options) or collecting interest (dividends, carry trades, etc), I don't see how you can make money without being on the right side of a trend in some time frame, so I would consider the trend to always be your friend. Some prefer pure price action...

If I really wanted the shares, I would sell the longer term puts as it gives more downside protection and reduces the commissions. You really don't get that much more if you sell the June and then sell another 5 month option after it expires. I like the added cushion up front, but that's just...

When you sell a CALL, you give the buyer the right (but not the obligation) to buy 100 shares of stock from you at the option strike price at any time during the life of the option (this is called "assignment". You are "assigned" if the buyer "exercises" his option). If you do not own the shares...

From the article: "The wedge pattern differs in that it is generally a longer-term pattern, usually lasting three to six months. It also has converging trendlines that slant in an either upward or downward direction, which differs from the more uniform trendlines of triangles".

As mentioned in the article, it's good for building a position on things you don't mind holding and want to average down in anticipation of longer term appreciation. One variation might be to allocate only a portion of your purchase to the puts to give yourself more protection in the event...

You might be better off asking when should you not use a covered call as this is more likely to keep you out of trouble. One instance: just before major news releases and/or earnings (I'm thinking of pharmaceuticals prior to FDA or things like RMBS with lawsuit decisions or things like that)...

I like to use slightly ATM or OTM (delta 0.4-0.6) to trade trends, especially on individual stocks. IMO, 3-6 month allows you to mitigate your theta exposure, keep bid/asks fairly reasonable, minimze overall capital risk, and still allow you to participate in most of the move. I like the ATM or...

Her system did work...for a time. I'd say a system that increases your account several times over in 4 years is a successful one for those particular market conditions. Unfortunately, it was a 50 ton Brontosaurus that was ill equipped (or unwilling) to adapt when the comet came. What was missing...

Some of the points in the video are either deliberately inflammatory, or flat out wrong. Examples: Inflammatory: "You WILL be issued a government ID card" Actual: "may include utilization of a machine-readable health plan beneficiary card." Every insurance plan I've ever had issues a...

This thread has some info on that might be useful http://www.elitetrader.com/vb/showthread.php?s=&threadid=186955

Correct me if I'm wrong, but I think what he is implying is that you need to be methodical and detached. Your system defines the framework you operate from: setups, position size, exits, etc. Once those are defined, your mission is just to execute, coldly and logically, a'la Mr Spock. If...

6E (Euro) seems to trend fairly nicely and is quite active during both the London and US sessions.

Hmmm, where did most post go? I and 2 or 3 others all replied and I know I didn't delete mine.

Your numbers look ok to me although when I checked, the bid/asks were slightly different. Just remember that you buy at the ask and sell at the bid. Just out of curiosity, why would you throw on 40 contracts right away? That seems like quite a decent size when you are new. Even if you are...

#1) MSTR in 2000. Bought at $50. It went to $53 that day and turned and never looked back. Did a reverse split a few years later 1:10. I sold around below $5 just to book the loss for tax purposes. 95% loss on $5k. MSTR has now recovered quite nicely since then. #2) Holding RMBS with a pretty...

How about this as an alternative (assuming your stock selected is BBY)? 1) Buy items from Best Buy Clearance Rack (Entry Signal) 2) Only buy items you will use if you can't sell them (Stop Loss) 2) Mark up prices by X% and sell to customers outside. (Profit Taking).