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ROFLMAO. I'd like to say that I sit here corrected but I won't stand for that! You're suggesting that a guy who wants to know how to calculate the future price of an option should roll a call worth two cts into an adjusted MER contract comprised of less than 100 BAC shares and cash in lieu...

-------------------------------------------------------------------------------- I don't think there is enough time. Even if the stock price doubles by Feb 13th (with 1 week till the expiration), I do not think the option will appreciate much...

OINK OINK If BAC doubles by a week until expiration, the option might double. And if the spread widens by a penny, he might make a penny from today's price. LOL. Gee this is a fun filled thread...

There's no limit to the hope that you can have. However, probability of success is a real downer.

LOL. Accounting methods do not cause you to lose the ability to deduct losses or carry them forward. They only determine how they are treated (ordinary vs capital gain) and how much you can deduct in a given year. And FWIW, if two or even twenty people here said otherwise, would that make...

It's not obsessive to make sure that someone you're doing business with does it properly and doesn't short change you of profits or add to your losses. It's also a good idea to check your own work :)

I realize that I need professional help :) but until I can find that, ET experts are all I have. An accountant acquaintance who professes no experience with Active Trader status tossed out the idea of setting up a separate LLC whose purpose would be to trade securities. The LLC's...

I'm not sure that's the case. Here's some more cut and paste info :) First of all, an MTM trader is truly in the business of trading! This means, that his trades generate no capital gains or losses - rather, all his transactions are reported on Form 4797, then transferred to Schedule C as...

Regard the previous two posts, here's some info that I ran across. I neither attest to it's veracity nor do I understand a lot of the stuff I read :) 1) If you're a trader, you're likely to be able to claim more deductions than an investor. Some deductions that would be claimed as itemized...

LOL. The more complex you make it, the more problems you'll have if you have to unwind it. a And no matter what hedge you apply, there's always going to be a scenario where it doesn't work effectively (you outlined some of the possibilities). KISS is often the better choice :)

If I understand your position correctly, you could achieve the same result (pre expiration) by just buying the bullish call spread at the outer strikes, thereby avoiding all the extra slippage and commissions. Expiration is a different story since you have a no profit/loss zone b/t the inner...

CC's and innate greed? (eye roll) If it's a bear market, stop writing CC's and utilize bearish strategies. As noted by others, your CC protected by a put LEAP is equivalent to a diagonal spread. If you're going to dabble with diagonals, IMHO, buy mid term protection rather than LEAPS...

He used a very simple algoritm: +u +p -c = money gone

BTW, can you clarify this statement? My understanding of MTM status from one of the web sites someone posted is that: 1) Gains and losses from trading are treated as ordinary income (a drawback) 2) The limitation on capital losses does not apply ($3000) 3) Losses can be carried...

For earnings, on Saturday I download and parse McMillan's weekly volatility numbers. http://optionstrategist.com/free/analysis/data/index.html I run that against the confirmed earnings releases for the upcoming week and determine the 1 week ROC (change) and delete all that are below an...

http://www.elitetrader.com/vb/showthread.php?s=&postid=2190988&highlight=PAIR+LONG+SHORT#post2190988

Perhaps you have been thinking about this in terms of your own trading and applying that to your conclusion? Even if the "deductng of Schedule D unused carryover losses from previous year is significantly restricted", I have none. I trade a pool of stocks frequently and in pairs. By...

Yeh, Fear Of Glowing is a good reason not to invest :)

When you're dealing with low single digit stocks, I think that it's a better play to trade the stock rather than buy an 2011 LEAP because you have so much more to overcome with the LEAP just to break even. For example, take BZH. The 2011 2-1/2 call at 65 cts (1/2 the cost of the stock) has...