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I think that puts and calls for insurance should be implemented by those who are more risk averse and are looking to shift the risk/reward ratio in their option strategies. It's not for everyone or for every situation.

1) Yes, anyone can decide to do this and not get clobbered. One may not make much initially but if one approaches it with a risk averse mentality and decides that protection of principal is paramount then one will survive. How many times have you read here where an experienced trader suggests...

At the SEC, it's the blind leading those who want them to be blind. How do you spell M-A-D-O-F-F ? :)

1) Read the news. Watch for the reaction. Get on. (Look for the UP and DOWN signs :-) 2) Get off

What will happen tomorrow is anyone's guess. A better plan is to scalp the trend. I trade financial stocks every day. On a day like today, the trend of the sector was down. Care to guess what my bias was? Hint: It wasn't long. A mentor of mine gave me some good market advice a long...

You buy a straddle because you think that the underlying is going to move a lot in one diirection. You just don't know which one. You sell a straddle because you think that the underlying isn't going to move a lot in either diirection and will stay within the profit range provided by the...

http://www.fairmark.com/index.html

Going forward, an accurate way to see what will happen will be to write down the prices of the options involved at different prices of DRYS. Make sure to notate the option's ask price if buying and the bid if selling. You can get a rough idea of what happened in the past by getting...

Do a web search on "Virtual Trading" and you'll get a number of sites for it. Ditto what MTE said. Virtual trading is good for learning the mechanics of order placement, trading at the bid, ask, etc. but don't be fooled by how well you do. The real world is very different. If your...

OK, dumb question. Do you count the buys and the sells or just the round trip as total shares traded? I'm at 7,500 per day if it's the round trip otherwise it's 15,000 per day. Yep, I'll look for a CPA who specializes in day trading. I don't know any local day traders so I'll try the local...

1) What the spread would be worth at the end of the week has no relevance to executions done today. 2) Your spread cost you 67 cts. You sold it for $1.65 for a gain of 98 cts per spread. You did three. That's a gain of $294, excluding commissions. 3) I have no clue why you think that...

Get your facts straight. It's discovered 8 days a week.

Jane, Invest in a library card and devote a few months/years to learning. No noob should pay up for seminars, coaches, etc.

This statement really hits home. I hate Sunday and can't wait for Monday AM. And people are fine as long as they leave me alone during market hours :)

Sexist! I could be a woman! :)

I think that it's at least "Everyone minus One" since I go bearish in a bear market. Chances are, there are a couple of others as well (g). There ya go again with that "Everyone" stuff... I'd suggest that it's a much better idea to shift one's bias toward what the market is doing. When the...

And then there's the concept of looking for an edge from capture of IV collapse. A light bulb moment?

Why pay someone to do your taxes if you can do them in 15 minutes (ignoring Schedule D preparation)?

A neutral to mildly bullish strategy is a good idea for a bear market? I don't think so. Buy and hold never does well in a bear, let alone in a Black Swan. As for outperforming those fancy hedge funds, given that the SPY was down about 35% last year, it would be a Pyrrhic victory to be down...

I'm considering filing for MTM accounting with the IRS. I've read a number of web sites (Fairmark, etc.) and I think that I understand the concept as well as the benefits. I'd appreciate any comment regarding any pitfalls you've run into if you've elected this method. A coupla basic...