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Granted, I don't know squat about futures but how does buying index futures facilitate the OP's goal of reducing his concentration risk in a few stocks and transitioning into diversified ETFs? It's true that options USUALLY carry additional costs but it's not ALWAYS. A no cost collar...

No leverage if you replace 100 shares with one call LEAP. Using the cash differential to take on additional positions would be leverage.

If an option is one cent or more ITM at expiration, the Option Clearing Corp will automatically exercise your options whether they are long or short. This is called Exercise by Exception. For equity options, you will end up with a position in the underlying (index options are cash settled)...

A no/low cost collar is a good idea to protect positions, particularly if they are highly concentrated in a few stocks. For the OP, the collar converts the long equity to the equivalent of a vertical spread (or diagonal spread if you buy a long put with a later expiration). Pushing the gain...

Using a high delta call LEAP as a surrogate for the underlying is called a Stock Replacement Strategy. Assuming that the implied volatility is reasonable, because the call is deep ITM, you'll pay a modest amount of time premium and you'll have very little time decay (theta) in the early...

Expiration break even is easy to determine. It's the short put strike less the total credit received and the short call plus the total credit received. Prior to expiration you need an option pricing model/program to calculate the projected values of each option on some later date (assuming...

Look at stochastics and Williams% R so you can look at the same indicator twice :D

>> So my question is, how do I learn to read the market without any indicators? Indicators tell you what the stock has done. They can show you useful things like support and ressistance as well as the current trend but they predict nothing. In addition, the periodicity that will work going...

The answer to that depends on whether you are buying or selling the Iron Condor. If you hover the cursor over the bid price of the combo, an information box will temporarily open and give you the details of the trade that will occur if you sell the combo (and conversely if you buy it). Or you...

Put and call vertical spreads are interchangeable due to synthetic equivalence. IOW. a $100/110 debit call spread is the same as a 110/100 credit put spread. If you just buy debit spreads, there will be no issue with your 3rd scenario (one leg is ITM and the other is OTM and the short ITM leg...

It's hard to determine from the information provided if you would do better with options. Option spreads tend to be wider, premium decays over time and the delta is a factor. You can use high delta deep ITM options but their spreads get a bit nasty and an average gain of a percent or two...

Given all the higher quality of services offered at major brokers who are now charging no commissions (charting, research, lower margin, shorting, etc.), I can't see why anyone would use Robinhood and their stripped down platform.

You're welcome tally2019. Every way that you can get a better fill really adds up. Even a mere nickel or dime. FWIW, XLNX was about $93 near the close. The ATM straddle cost $8 and I bet that it will be worth should be less than 1/2 that in the morning, breaking even outside of 85-101...

For the investor, another use is buying high delta deep ITM call LEAPs as a surrogate for the stock, often called the "Stock Replacement Strategy". LEAPs have very little time decay early on. Assuming that the implied volatility is reasonable, you'll pay minimal time premium and that (plus...

Using an option pricing formula, you can calculate the value of an option on any given day in the future and therefore, the future value of your straddle. You vary the price of the underlying up and then down to determine when the straddle's value equals what you paid for it. Those will be...

Your question is a bit hard to follow. It would be helpful if you provided the details of a position: - stock price - strike price - put or call - expiration date - premium

After the last EA, ROKU's average implied volatility dropped 40 BPs. In reality, the near expiration dropped more. Let's go with 40 BP. Suppose this morning was the EA. ROKU's ATM long straddle for this week costs about $8 (yesterday's close). With a 40 BP contraction, half of that...

Here are some more random thoughts. The position is a diagonalized butterfly or iron condor, possibly unbalanced. I'd set up multiple ways of entry. For the iron condor: (1) 4 legged combo order (2) Two strangles (body and wings) (3) Two diagonal spreads While I did scores of these...

tally and Blue Water - You're welcome. Yes, it's time intensive finding these. And even if you find them, some may be worthless because the B/A spreads are too wide and/or there's insignificant option liquidity. Monitoring them before taking a position is also time intensive because...

OK, here's an idea for ya. I used to trade a lot of high IV EAs. I'd look to sell a very inflated near week straddle or strangle and buy the next week's further OTM strangle if it had a acceptably lower IV and then ratio it. IOW, an unbalanced diagonalized short Iron Condor with more long...