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If your stock(s) are marginable and if you have a margin account and if you have approval for naked option selling and if you have the minimum equity to be approved for option trading and if TOS's margin requirements are not higher than Fed requirements (exceeding your margin available) then...

With whole stock splits (2:1, 3:1, etc), the number of contracts is increased and the strike price is reduced. Therefore, a 2:1 split on a $30 stock results in 2 contracts having a $15 strike (100x1x30 = 100x2x15). With fractional stock splits (3:2, 5:2, etc), the number of shares covered per...

>> I thought, "there's no law that says I can't wait another 30days to take a profit or to recoup my capital. Why sit here and keep losing money" Now, I'm feeling better..I'm not losing money. << jdoucet, I'm not sure what strategy you were referring to but in general, rolling is fine if...

FullyArticulate, That's a really good summary of how one should approach selecting the option strategy for the outlook for the underlying. Many just pick a strategy just because it looks interesting w/o regard to the what ifs.

Quote from EliotHosewater: "Why not do the put calendar above and the call calendar below the current price? A couple of quick checks on TOS shows that the cost about the same and the risk graphs appear to be identical, at least for the first expiration. Then if the stock moves up your call...

>> Due to the time value degredation, I am looking for confirmation that the best way for me to play this is to be as close to exp. as possible and slightly in the money? or is it better to be deeper in the money? I have noticed that the % change can be quite different..and i am thinking it is...

jdoucet, Here's a suggestion to try in your virtual trading. Try some calendar strangles during quarterly earnings season on issues where there's a relatively high skew (near term month's implied volatility (IV) is significantly higher than the next month). Sell the near month strangle...

Quote from IV Trader: "We will have an yahoo board reunion soon , waiting for unfamous leaps put seller ( that walks on four and have a tale ) to sign up on ET." Heh! Let's not and say that we did. And FWIW, I left no trail of bread crumbs :->)

Quote from jwdoucet: "I trade a lot of iron condors but I am looking at doing just straight call/put verticals or calendars for awhile. I've done a lot of verticals but no calendars. I like iron condors but not the fact that i have commissions on four legs going in." LOL. And it can be...

>> If the stock pays a large enough dividend and there is an ex-dividend date before the short call expiration, you might be assigned. It's happened to me. << Yes, quite true. That's another reason for doing the OTM put calendar instead of the ITM call calendar. If the short call trades...

"Jesus, I phucking hate to repeat myself. " LOLOL... so why did you? (no reply necessary... it's obvious)

Quote from jdoucet: "So in a scenario like I have, if I am assigned would that be a bad thing since I have a long option at the same strike? would I be losing money?" As long as you did not botch closing the position, you would not be losing money. Early assignment would result in short...

A calendar spread profits from the passage of time and/or an increase in implied volatility. Since both legs have the same strike, if ITM, they will have the same intrinsic value and the extrinsic or time value of the near term leg (Oct) will be less than the far term (Nov). That's where...

If you're short trading term, the underlying tends to be better since there's less slippage and you don't have the option issue of a delta of less than 1.00 Options have a lot of versatility and you can use strategies to accomplish different goals. It all depends on your comfort zone...