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And a new chain as well for every correction (eye roll)

I'm just curious, How many ways (and times) are you going to ask the same question? For your info, if you use lower IV options, the debit cost of the options will be more but the loss will be less if your stock rises 10 pts. If you use higher IV options, the debit cost will be less (or a...

Sure it's kind of cool but is it something big enough or reliable enough to place a bet in size? Suppose that there are about 2,000 optionable stocks that are under $25. A random distribution means about 8 stocks every 10 cents. With a strict definition of finishing AT the strike, that's 8...

If you know that the stock is going straight up in the morning, just buy the stock or deep ITM calls. BELIEVE is a better word than KNOW and HOPE is the most realistic of the three. If you want leverage, buy the OTM calls but the further OTM, the more right you'll have to be.

Anything is possible but annual returns like that are not likely for most people. Sooner or later most people hit a losing stretch or a serious drawdown that eats up an awful lot of those small winners.

My guess is that you're starting with options with something a bit over 100 negative delta[ (net delta somewhat negative when added to the stock). ATM calls have aprox a 55 delta so by a 110 stk price, you'll have 2 times that plus the put's delta for maybe a net of 130-140 delta. Offhand, I'd...

Well, as a mentor, I would not be showing you what supposedly worked, but what worked for you, the persons involved in the mentoring which would be showing you that the model itself works. You would be the biggest of all winners because we know who is the person who does not recognize good...

Well this all sounds like riskfreetrading to me. I gotta mortgage my pampers box and sell my panhandling spot in front of the car wash and get into this get rich day trading ASAP!

Short selling exacerbates volatility which is responsible for trade deficits, global warming, world hunger and jock itch.

If the strategies are equivalent then the acquire price will be equivalent (assuming one includes all relevant pricing components)

What's the market maker's risk if he arbs a conversion or reversal to create the options that he's selling to you?

Collars are equivalent to vertical spreads. So variations would be anything that you add to a spread unless the adjustment makes the position fit nicely into another name (eg. two verticals becomes an iron condor or a butterfly, etc.)

Read everything that you can get your hands on (web sites, the library). Don't worry if you don't understand all of it. Once you have a basic foundation, you'll get a feel for what is and what's not for you and you'll be able to judge what books will have something to offer you.

At $6, your naked 7.50 naked put should be trading near parity unless it has a high IV. If near parity you can: 1) Hope for early assignment 2) Hope for recovery 3) Start writing your calls now, either naked or as bearish call spreads. The problem with #3 is that if the put is near...

It's a ratio spread. I learned that right here from reading other posts :) "I've been recently been developing a strategy generally focused around the idea of a RATIO SPREAD trade where an ITM/ATM/or OTM call or put is purchased by the buyer, who finances it with 2 further OTM options in the...

LOLOL.. Don't sweat it. :) The stats in the chain were bad from the start. Asd was just practicing his typoese :) I'm off to set up for the opening of the Gambling Channel at 9:30 AM. Later.

Now I'm really disappointed in you! I sold you the manual for the Market Trading Secrets of ______ and you still don't get it??? Do I have to become your fee based mentor as well ??? :cool:

The short call is either naked or its covered. Covered means owning shares of the underlying or an equal number of long calls. That doesn't necessarily solve your problem of mitigating the risk but it cures nakedness :)

I remember that info from by Atticus and was also puzzled by the assignment risk. But that's not the point. While it's possible that the hedge fund is predicting pinned stocks (I doubt it), I think that it's much more likely that they're selecting positions on underlyings on expiration morning...

Ouch! I think I need to be more aggressive in pulling out excess cash as it accumulates. Thanx for the link.