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If anyone had a consistent track record in selecting equity and index option plays, they'd trade them for the bucks. Them that can, do. Them that can't teach (or sell investment advice to those who have get rich easy dreams). Selling words is where the easy money is. And that's my...

LOL. Sounds like you have a plan. Also sounds like you need to get to build that software. I find that 3 earnings plays per session (each with multiple legs) stretches my limit. I manage them by bracketing them with price alerts. And if it's something like a condor or calendar strangle...

Good answer, particuarly since I was even able to understand it :) Does that mean that the imbedded 2.15 cost of carry will be constant through near term expiration? IOW, there's no advantage to taking one side or the other for 3 weeks since that 2.15 CoC will not start ticking off until...

My 2 cts is that if you're getting good results with an option strategy, stick with it. But if you're not getting consistent retruns with pre-earnings straddles, consider something where you receive some inflated premium as well. As for the EBAY puts, I'd salvage the 40+ cts or so...

4 option pts = $400 3.5+ = $350+

How do you differentiate the speculative buyer of 10K calls at the ask from the hedge fund buying 10K calls at the ask to protect 1 million short shares ??

As Kevin Costner said in "Dances With Wolves", GOOD TRADE! :) If you prefer not to leave money on the table, close the position the first thing in the morning. In my modest experience, better option prices can often be had early as contraction often continues throughout the AM. I'd...

Fully Articulate - Yes, that's what I was asking. Thanks for the clear and concise explanation which further serves to remind me that I need to get past my very basic understanding of the Greeks. I need to be able to think and speak it rather than just understand it when it's explained...

Would a ratioed straddle, biased toward the "inexpensive side" be acceptable? (more 50p's than 50c's) And if so, if I chose a hypothetical IV where the delta of the 50p was 1/2 that of the 50c (stock at 52.50), the ratio would be 2:1 to be delta neutral. Yet the risk graph would still be...

Richard - Thanks for playing. I learned about the RC from IV Trader. I've done a number but haven't seen great results - just small profits that are enough to buy some guys a pizza :) If there's a pre-existig chain that addresses my question, would appreciate a trail of bread...

Hey! Pizza Boy! (AZD) Good to read ya! I'm still over there a bit but it's in the crapper. More and more seem to be showing up here. Plus, the info here is much better. So much to learn, so little time :-) Spin

I'm curious as to what strategies others employ to take advantage of the inflated IV prior to earnings. I tend to favor ratioed calendar strangles and one sided OTM ratio writes but will occasionally do a reverse calendar (near expiration if vols are severely inflated) or just a naked...

Yep, I am one and the same, formerly of Yahoo which has gone into the crapper. Now I am here, trying to soak up the ideas and concepts of the many, more experienced traders that post here. Thanx for the kind words.

The wash sale rule will only affect you if you sell at a loss in December and then buy it back in January or if you hold open positions in shares (or options) at the end of the year that have accumulated wash sales. If everything is closed by year end, it will not affect you. So trade...

The SNDK adjusted contracts (root symbol CEU) are for 76 shares of SNDK plus 16.04 in cash. That values a contract in the vicinity $3,320 If you look at the various about to expire January CEU options, the premium will look large because of this valuation but in reality, they are trading...

Assuming that you're dealing with OTM options: 1) If you sell calls (a covered call), your downside protection is the amount of premium received. Your max. profit is the strike written plus the premium received less the stock's cost. 2) If you buy puts (put protected stock), your risk...

>> Actually, Smililngsynic agreed with me in stating that there was a visual relationship << Does my thumb resemble my other hand? Sure does, if you only show my right thumb. :)

Bob, Why is it that you have such an attitude about someone responding to a direct question of YOURS? YOU asked the question. YOUR question was answered. If my response was incorrect, correct it. If not, chill.

---------------------------------------------------------------------- Quote from exQQQQseme: Spin or Don: Where is the carrying cost (other than the margin interest charge where applicable) when the stock is shorted? Bob...

"Regarding the risk graphs...trust me, there is no similarity. The vertical normally resembles a letter Z or N...not exactly but you guys know what I'm talking about. What I generally come up has curves similar to a straddle." Q- I think that you're mixing apples and oranges. A...