Search results

-------------------------------------------------------------------------------- Quote from spindr0: Hey! Get your facts staight! Covered call sellers make a lot of money on their option trades!!! It's the stock that kills em (g)...

Ya know, people like you make my head hurt (g). Interesting SKF/UYG premise. For now, I just want to comment on your UYG/GS pairing. In the long run, in order for pairs to work, you have to be lucky or have an edge. Luck is fine for positions here and there but eventually, the law of...

Because long options are directional, the key to success is timing and selection. That means that it's the underlying you have to get right, not merely the options. Well OK, there are those little issues like what strike to buy and avoiding IV collapse (post earnings release crash), etc...

In the stock market, it's better to be lucky than smart (g). Ratioing long puts to your stock works quite nicely in a market like this. It won't work as/so well if the market levels off and IV contracts. Another game you can play to generate additional income is to write some OTM...

If you're making profits on hedged long stock, you've got to have more puts than round lots otherwise you'd be racking up larger paper losses than realized gains (duie to the stock's delta being greater than the option delta). If that's the case, I think it's more luck than anything (a...

Hey! Get your facts staight! Covered call sellers make a lot of money on their option trades!!! It's the stock that kills em (g)

I'm sorry, but you are not eligible for the IB Reimbursement Program if you have signed up for the Bush Bailout Stipend.

When IB froze your account, what sort of margin violation did they cause when they were trading your account without your permission? :D

Hi Mark, Yes, short-term trading is not for everyone. And yes, it requires a totally different skill set and probably a different mind-set as well. But given the choice of chasing small premiums on naked options in a volatile market (IMHO, a lousy R/R ratio), I think that it would be a...

I heavily utilize a pairs trading strategy and have done extremely well with it this year. I picked the idea up from someone on another trading bb and enhanced it with my parameters. There are many ways to approach it but AFAIK, not only do you need to recognize correlation but you also...

As mentioned by someone in an earlier post, you sell puts on stocks that you're willing to own at a lower price. If you're not willing to own it, you had better be neutral to bullish on it and ready to cut a loss quickly if it moves against you. Currently, I wouldn't sell a naked put on...

Would that be anything like passing a law that all arsonists must return what they steal? :)

Theoretically, it would be a stock that is not going down in price.

The only way that those calls could be worth $4 each would be if X rises a lot really soon (maybe $43+ on Monday) or you get a huge jump in IV (or some combination of both). It's not likely to happen. Only if you understand that it's like a night at the track. Depends on what you mean by huge...

With straddles, you need to be able to find underlyings that are going to move a lot to compensate for the higher cost or you need to look at strategies where you are taking in some premium to offset the cost of your long premium (spreads). Anyway you cut, there's rarely any easy money...

Hey AZD, LTNS. Actually, I used to call them Holland Tunnel Spreads... Big enough to drive a truck through! Nahh, no slices of pizza this year... I kept racking up beer tabs to Pantheon so this year, I decided to buy the pizzeria :)

If people could make 50% a year, we'd all own Manhattan. The Federal deficit would be wiped out from the taxes paid. No one would work because we'd borrow up to the gills and would retire by age 30. It's possible to make 50% in a year. I've done it once... and on something more than a...

Did you see the trucks that they were driving through them ??? (g)

If the stocks have low volume, it's likely that their options will be illiquid and will have wider B/A spreads. And because you're fighting IV, time decay and a lower delta, it's much much harder to scalp with options. I day trade illiquid stocks(no options) because they're like the Pony...

lejmorro, I am sorry to hear your tale of woe. Been there, done that. The crash of '87 taught me to respect the use of margin. Maybe it was the subsequent margin calls days later when they figured out whether I still owned all of the stocks I might have owned (10/19 was option...