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While the OP may be able to sleep this weekend, as noted by many, the risk is that GOOG goes up Monday morning before the short can be covered and that risk was not his intention. Therefore, "So what?" won't be very soothing to his ears. The other possible risk is that IB restricts his...

Hey Cowboy... You better clean up your act PDQ otherwise you're going to end up on chickP's ignore list !! :)

Then the probability of precipitation will be 99% rain, 1% people. :)

If this was a naked call and IF you are assigned, you will be short 100 shares Monday morning. If you have online access, verify this. If you do not, speak to your broker/firm early Monday morning. If you want to be short the shares, no problem. If you don't want to be short, verify...

The uptick rule was abolished nearly two years ago. Currently, there's chatter in Congress about restoring it. The SEC meets April 8th and it may be reincarnated then.

I think that your interpetation of what you read here is incorrect. There are very few people advising noobs to "give up before they start." What I see is an awful lot of people, myself included, who have learned that this isn't an easy road to riches and are advising noobs that they would be...

Way too funny! Every time I read a screwball post from some poster, I wonder the same thing. RFT has become the epitome of BB wacko-ness ?? LOLOL

I agree wholeheartetedly. And sometimes, it's a tad of luck as well. I've been working a bear approach for 15 months. Intraday drawdowns occasionally occurred but were tolerable. during the morning of last Sep 12th (Fri), I had the worst intraday draw down (at that point I was 9 months...

I suppose that might have some relevance if you're dealing with $2.50 and $5.00 stocks since zero isn't far away. But in the real world (say the likes of AMZN, ISRG, GOOG, etc.), it's not relevant since the stock is never going to rise by the amount of its current price... at least not before...

Today's goal is to get a few more names on the list. Anyone wanna guess who the biggest tool here is ? :D

Where's the stick ??? :) My two cents is to ride the mommentum not bet the guess.

You suggest a nomenclature possibility where you would be considered short when you have a credit and long when you incur a debit. Consider a diagonal. Using a LEAP instead of a 2nd month leg can change a same strike (different month) position fro a credit to a debit yet in both cases, the...

My apologies. Of course you're the OP. Let me restate my comment correctly: >> You're off on a tangent. The OTHER PERSON was discussing the unlikely possibility of achieving a return of 4% per month not the money management/diversification of risking no more than 3 pct per trade. <<

You're off on a tangent. The OP was discussing return per month not money management.

I get what you;'re trying to do. FWIW, I trade pairs heavily (long stock against short stock). In broad strokes, it's a similar idea. The advantage to stock over options is that there's so much less slippage and no hassle with lower delta. But this is about you... I'm laboring the point...

The previous poster wasn't talking about getting a 4% credit. He said "If you are just randomly putting up verticals and condors there is no way in hell to achieve 4% monthly return" and I agree with him. It's possible but really not likely. and as someone else noted, you have to get lucky to...

If the underlying moves up but the option doesn't, the IV is contracting and/or you have a large spread and last trade may be confusing you. If you want to compare IV change, you have to be consistent - compare bid to bid, ask to ask, midpoint to midpoint, whatever. You can't compare an...

Your numbers are correct on an expiration basis. Prior to that, the strangle will make money on smaller moves and will have much narrower breakeven points.

It sounds possible but you'd have to use a pricing formula to be sure. There are several problems with such an analyses and I don't know about Option Oracle or how it handles it. The main one is that most likely, the two options have different IV's. Are the valuation projections based on...

It doesn't matter if the beta is 2.0 or 1/2. If you want a 2:1 gain from a directional move, you buy the higher beta and sell the lower. The fantasy is wanting to collect 10% on a 5% move and pay 5% for a 10% move... or something like that (g). IOW, you can set something up that will pay...