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It's not just option traders that blow out, all traders do, be it stock traders, futures traders or whatever. It's just the nature of the business - in order for the select few to succeed the majority must blow out. The problem is that trading has very little barriers to entry (i.e. low start...

99% of all constipated people don't give a shit.

I'm guessing he likes the idea of losing money even when you're dead right on direction.:D

One thing your forgot to mention is which instruments are you talking about? I guess any and all, but then posters should specify which ones. Also, except for spot FX, brokers have no control over spreads. Btw, I'm more than happy with my current broker.

I think the main point of this product is the ability to short the market without the need to short sell the ETF.

Well, exactly. Synthetic relationships hold throughout the options' life, once options expire the relationships disappear as the options in question no longer exist.

How about skin on your balls?:D jk, sorry, couldn't resist.

Fair enough.:cool: Good trading!

JSHINV, Sounds like you didn't like daddy'sboy comment about a covered call being the same as a naked put. Well, whether you like it or not this is the case, the two are identical. So anyone who says he/she doesn't like naked short option positions, but is ok with covered calls is fooling...

Last price is what the last execution was at. Bids and asks are quotes.

Last price is the price at which the last trade took place. Last price, assuming the market doesn't move, will be equal to bid if the last trade was at the bid, and will be equal to ask if the last trade was at the ask. If you have a limit sell order then it will be on the ask side and will...

I've never used Chartbender, but I did have a look at it and the way I see it is that their software tells you how much changes in volatility, time to expiry and price of underlying have individually contributed to your total p/l. So it may tell you, for example, that your total p/l is $500...

You can just model them separately and then combine to see the overall result.

Why don't you just plug the trade into an option pricing model/analysis program and see what happens under various scenarios.

I assume those are calls. If that is the case then what you have is a call backspread, which is a long volatility play. Sort of like long straddle, but with capped profit to the downside. The max profit to the downside is below 5850 and is equal to your net credit. The max profit to the...

In simple terms, it means that options are the most sensitive in the last week so relatively small changes in the underlying can translate into big profits/losses. In the context of selling spreads with 1 week to expiry - the trade off for you is that in the last week time decay is enormous...

Weeklys are Gamma options. Pure gamma plays.

Don't have those yet, but I'm sure they will eventually.

With all this talk about ETFs vs. Index Futures, how about Futures on ETFs.:)

- Buying a stock is easy, anyone can do it. Buying a futures contract is more complicated, a futures contract expires so you need to roll it if you want to hold for longer term. - Some people don't want leverage. - Futures require a futures broker, while you can buy QQQQ in a regular...