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MTE, All I can say is DUHHHH !!! Well obviously, what you can do to one side of a synthetic, you can do to the other and have the same result. LOL. It just wasn't obvious to ME since I was focusing on the trees, not the forest. Thanks for the clear explanation. Spin

"The spread and liquidity might be a valid point, but the delta is not. The stock has a higher delta, but the overall portfolio has the same delta as its equivalent vertical." Yes, since they're synthetic positions, the deltas of the 2 positions will be the same. What I was suggesting...

Monday January 8, 7:30 PM EST AtheroGenics today reiterated its guidance that the ARISE top line results will be available early in 2007. The Company further refined its guidance to indicate that the results will likely be available no sooner than late in the first quarter. At this point in...

To 4Q: 1) I don't see any relevance b/t your AAPL position started in November and this diagonal, started for the purpose of this thread. This is a new position, going forward. 2) It makes no difference which of the two synthetics you start with (collar vs. vertical... or in this case...

Although we parted ways, Dave and I remain friends to this day. Last week we met at the CBOE for dinner, and that’s where Dave revealed to me – what could be – the greatest money-making secret of your life. And he said: THERE IS NO SANTA CLAUS !!! (the end)

>> I would love to know the answer too. This is a strategy I love but can't seem to perfect it. << LOL. You and me both! I'm trying to balance decay versus timeliness. >> Take a company like DNA. Its IV ran up in Sept - Oct from 23 to 33. Then nothing really happened by the earnings...

Quote from xyannix: It could be that the IV chart is showing front month and the IV rise only happens once the front month is the month of the earnings release? For example, The Jan options are staying flat because the earnings announcement will be lets say Jan 30th, after they expire...

Quote from IV Trader: JAN qtr is always diff from the rest , because many stocks reporting later then usually. Usually about 70% done reporting by end of reporting ( this) month , but its not the same for JAN ( add 1.5-2 weeks)...

IV tends to start inflating somewhere around 4-6 weeks before earnings are released. With 4th quarter releases starting up in 3 weeks, an awful lot of them are depressed and barely moving up. Any thoughts as to why the typical quarterly pattern is flat lining?

Read these and then perhaps you can hone in on more specific questions: http://www.888options.com/strategy/protective_put.jsp http://www.cboe.com/Strategies/EquityOptions/ProtectivePuts/Part1.aspx

The buyer of those calls could be closing an existing position or hedging other positions (stock and/or options). Activity in them implies nothing.

I think that your question is confusing because you have what I think is a typo. You have "short 2 x 70 calls, and long 5 x 75 calls" and they turn into 73 calls and puts? Ignoring your conclusion and sticking with the original 70 and 75 calls and keeping it simple, if these options had a...

Bob111, Nice web links... You've got waaaaay too much time on your hands (and don't ask me what I'm doing here :>)

Can you figure out from the time stamp to see if it was a delayed fill versus being a delay in reporting a more timely fill? If the natural value of the spread exceeded the credit that you were seeking, you should have been filled immediately, at least to the extent of contracts available at...

Bob111 Where the heck did you obtain a picture of me and my trading team ???? (that's me on the far left :-)

>> How come they teach this stuff then if its not applicable in the retail domain? << It's important to understand how they are ripping you off :->)

Check your cables for bugs. Tear the phone out of the wall. Get rid of the web cam. Make an aluminum foil hat. They're watching you !!! :->)

Quote from backflip: Is it not easier to adjust a covered write that is going against you than a naked put? With a covered write, I have the option to roll down, or out a month and down, and it seems that with puts it is much more difficult to roll down or out and down and still have profit...

>> Just bought a put to lock in gains from a covered write on NITE. Originally bough NITE at 17.50 and sold a Oct 17.50 call for 1.15. Just bought the Oct 17.50 put for .35 to lock in gains. If NITE drops I may be able to make a small profit on the put, but my main objective was to take the risk...

Initial margin requirement for your short put: - 100% of option proceeds, plus 20% of underlying security value less out-of-the-money amount, if any - minimum requirement is option proceeds plus 10% of the put’s aggregate exercise price (number of contracts x exercise price x $100)...