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That's what I'm trying to figure out. As I mentioned previously, I'm probably going to have to capture the details of a number of puts over the course of a a week or two before the ex-div date as well as on the ex-div date and then analyze the roll before and the roll after returns. I was...

I'd like to revisit this question but I'm not sure how to ask it. Suppose I own appreciated stock. It's now at $66 and I have a target sell price at $70. If the EA was less than a month out and IV inflates nicely going into earnings. I might wait a few weeks and then sell inflated...

Sorry for the naive question but is Payment For Order Flow the same as Maker/Taker fees? Or are they separate entities?

I wonder if someone is actually going to take the time to run the same trades sumultaneously. And even if done, how do you know that the fill on any trade would have been better or worse at any given moment in time? Liquidity changes and the first order received gets the goose. The second one...

Thanks for your feedback. I've been with IB for 20 years. I place my trades and I get my fills. I never looked further than that so I know nothing about the inner workings of ECNs and the underpinnings. With that in mind, I have read comments here and there that orders sent PFOF results...

I beg to differ. They always cooperate in the Simulator :->)

Interactive Brokers just announced that they will be introducing IBKR in October with no commission trading. The fine print says that orders will be routed for payment for order flow rather than via their Smart Routing system. My limited understanding is that PFOF may result in inferior...

The answer to that is always known at expiration :->) The distance in strikes is a trade off between risk and reward. - The closer the strikes, the larger the credit but the more likely that a strike may be penetrated. - The wider the strikes, the smaller the credit but the less likely that...

A collar is synthetically equal to a vertical. If the defined boundaries of a vertical are acceptable, you're good to go. If you don't like having a capped upside, the a vertical (or collar) isn't for you. Don't think in black and white terms of 'full profit'. Booking a large percent of the...

You are not charged margin interest on options. Short options have a margin requirement at all times and that disappears when the position disappears (expiration, exercise).

Selecting a put hedge involves several trade offs. It's like home insurance. If you use a select a higher put strike, you pay more for the hedge but you have better protection. If you use an OTM put, you pay less for the insurance but you have a higher deductible (the underlying can lose...

CBOE Symbol Directory - Equity, Index & LEAPS Options: http://www.cboe.com/trading-resources/symbol-directory/equity-index-leaps-options?sid=P

It's good advice but to get a credit, there has to be enough time decay in the intial put sold. It also requires that you have the opportunity to trade at $98.25 (gap?). Stocks and options don't always cooperate :->)

Options can be assigned at any time but that's not likely if there is time premium remaining because exercising throws away the time premium. An exception to this is if the time premium of an ITM put is less than the amount of the dividend. Then there's an arb (buy the put and the stock and...

There are several factors at play here. The B/A spread on these puts is wide so minor price movements can easily be swallowed up within it. As Friday nears, option prices adjust for the weekend time decay, even more so as theta is increasing as expiration nears. That too eats up option price...

Yes, dividends are already priced in. What I'm trying to figure out is that if I have a somewhat delta neutral long stock collared position and a dividend is pending, am I better off with a more puts at a more OTM strike of fewer puts at a higher strike? I can't imagine that the dividend...

I collar many of my equity positions and I am comfortable and adept at managing and adjusting the positions as price changes so I'm not asking for suggestions about the strategy per se. I understand that this is equivalent to a vertical if all legs executed at once but I tend to put the collar...

It's not how big it is but how much it's moving against you. If you're long the option, on the right side of the move and you have the margin to support the trade, bear in mind that you can lock in gains by taking the opposing position in the after market and unwind in the AM. A classic...

AFAIC, the primary reason for selling a naked put is to acquire a stock that you want to own at a lower price. Other than that, the R/R is asymmetric and lousy.

If all of your puts are exercised, you'll buy $100k worth of stock. However, you received premium for the short puts so your acquisition cost will $100k less the total amount of premium received. To keep it simple, let's ignore the premium. If you buy $100k of stock with $50k, you are on...