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I agree, commissions are only part of the cost. If, for example, a broker can get a consistently better execution by 0.05-0.10 compared to others, it's $5-10 per contract. Similarly, if the platform is not reliable it can end up costing you much more than commissions.

There was no other forum paired with options. The options forum was the last one before the Community Lounge - Hook Up and Chit Chat. Finally we got the spot we deserve! :)

The actual calculation of whether to exercise to capture the dividend or not consists of the put premium plus the cost of carry to expiration. So the dividend needs to be greater than the sum of those two. It may be a few pennies, but if you can do it hundreds or even thousands of times...

That's why you not only exercise the call, but also buy the same strike put. This allows you capture the dividend while still maintaining the same position as the original long call.

This line of thinking is completely wrong. Companies sell stock at IPO to raise capital for investment in their businesses. With those investments they create value. If they don't sell stock then they cannot raise capital and thus cannot invest in their businesses. Any future gain in their stock...

John made money on the stock and not on the calls. On the calls he lost money, and his loss on the calls is Carl's gain. The fact that John made money on the overall position does not contradict the zero sum game concept in options.

The rep was correct, if you are short an option then you can get assigned at any time no matter how irrational it may seem. That's the right of the option holder.

If you are not approved for naked selling then why don't you sell a spread!?

Dynamic adjustment is expensive so be careful with it.

He was referring to the mispricing of a particular option relative to other options in the chain. Think put/call parity, box spread and jelly roll.

Futures option traders do care a lot about IV. It's just that this information is not readily available for free.

Do you even realize how ridiculous your statement about the percentages is!? You are comparing 0.5% of the stock price, which amounts to over $0.10 by the way, with a 20-30% "mispricing" between the two calendar spreads, which only cost around $0.60 to begin with. If you go back to the...

Look up Black-Scholes option pricing model. In there you will see that the dividend is part of the model, so dividends impact option pricing. When you use a model to calculate an option price you calculate the forward price of the stock (a stock futures price, if you like). One of the main...

It's not about more people playing the puts, it's the dividend. DOW pays a dividend at the end of September, which makes the puts more expensive.

Ok, granted the thread name "covered call price drop" is a bit misleading. However, the actual question in the post is simply about the call price and the reason behind the fact that its price didn't change despite the rise in the stock price. The fact that it is a covered call or a naked...

The calls should be winners on themselves if we don't count the delta move!? WTF? I guess applying the same logic, the calls should be losers on themselves if we don't count the volatility move and time decay, huh!?

OK, let's look at the first post one more time: So he/she is saying that it seems strange that the stock went up today, yet the call price stayed the same as yesterday. Now, please, show me where in that post noob_trad3r askes or even mentions profit/loss!?

Yeah, the part that is not right is that you failed to read the post thoroughly. The OP asked about the call, just the call, not the total position.

For crying out loud, it's PRICE! P-R-I-C-E! Not PRISE or PRIZE!

There is no best, each has its pros and cons. It really depends on what features you require. With that said, Thinkorswim is, arguably, the benchmark for retail option traders.