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Hoadley.net is probaly the best value for money. Alternatively, if you trade the US market, you can open an account with Thinkorswim and have a good options software for free.

Dividends are only a problem for calls not puts, and the OP stated that he/she has the puts.

Not true! You are forgetting about the probabilities. Risk/reward is useless without having probabilities attached to it!

Finally the market can move lower! :D

Theoretically, yes, but I suspect FAZ uses some structure to generate these 3x daily returns, which may have a cap eventually. I may be wrong though. I would suggest reading the prospectus before making any assumptions and/or trading it.

FAZ doesn't have unlimited upside as it moves inversely to the financials, which can't go below zero. I'm sure you'll find some limit to the upside of FAZ if you look into the prospectus.

Yes, I do.

I didn't say that the market's move hasn't been dramatic, I said that for my IC positions it hasn't been. And the reson being that, firstly, I didn't enter them at the market bottom, but rather half way thru, and, secondly, I didn't overleverage, i.e. I sized my positions properly.

Not necessarily. This month hasn't been all that dramatic for me yet, nor it will be even if the market keeps going up next week.

http://www.cboe.org/publish/RegCir/RG09-030.pdf It's 0.006 per contract with a min of 0.01.

All brokers strictly enforce this rule!

It ain't over yet, there's plenty of time for a "negative wells fargo" to happen.

Sure. :D

This "mean reversion" thingy better start working ASAP, otherwise it's gonna get ugly. :D

When you use options to create a synthetic long/short stock, you actually end up with a synthetic futures contract on a stock and not the stock. Generally, this point doesn't get stressed enough, so people don't even realize this when they talk about synthetic stock.

I would never pay the full bid/ask spread on an IC in any index!

Exactly. This has happened with my positions numerous times.

I would (and actually I do) trade all 3 of them SPX, NDX and RUT. Unless you specifically wanna trade only one index. You may think: "Well, the 3 are highly correlated so what's the point of trading all 3?". While they are correlated, the correlation is not prefect so you do receive a...

First of all, if you do 40 contracts (10 ICs) then the cost is 1.50 per contract plus 9.95 and not 2.95 per contract. Second, you can choose one of their other commission structures, which may make more sense than their base one, if you trade 40 contracts per trade. Third, you can try...

In theory yes, but in practice the stock doesn't trade in a vacuum so other things may impact the stock price and it may not open exactly at 48.