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I assume that you meant BUY the $12.50 put? I don't know that I'd consider this "a relatively safe way to collect dividends" since you have 2-1/2 pts of downside before your protection kicks in.

I'd agree with you on that. All I can repeat is that it sounds like a wad of excuses for his problem: 1) regarding, for the moment all the circumstances which got me into this position in the first place 2) the last time I could check my account was 2 hours before Friday's market opens...

Consider buying a tad more protection (ratio), either at the long strike of the condor or the next strike OTM. If the slippage isn't nasty, roll the profitable side in a bit closer as the IC moves against you... and possibly roll the other side further OTM, particularly if you have some time...

What's lacking from your story is your margin situation at the time of IB's action after that "other" assignment. If you received liquidation notification from IB due to insufficient margin and you did nothing, how is this their fault? If you had sufficient margin to cover your positions then...

LOLOLOLOLOL !!!!

OK, expiring options that are OTM cost you a nickel (maybe even a penny or two) if you buy them back at expiration. So they're almost zero at expiration. LOL.

On an expiration basis, it's fairly easy. If they're all from the same month, all options are zero if OTM, intrinsic value if ITM. You can set it up in a spreadsheet or use an option charting program. If any legs are diagonalized, it's a bit more complex as you'll need an option pricing...

Among other possibilities, if you diagonalize a bearish call spread and make the OTM strike the distant month, it can be for a debit and the loss can exceed the debit (debit paid plus the difference in strikes, if driven to parity by a big move). Combine that with the mirror image on the put...

If you can turn a profit while only buying puts and calls then continue doing so. Never execute a strategy that someone else claims is better or is having success with unless you fully understand it and feel comfortable with it. Yep.

No, there are spreads where the maximum loss can be greater than the initial debit cost.

Yep, buy sheep, sell deer (g)

Scott, No need to apologize for asking questions. You're absolutely right that on a same dollar investment, the return from the calls is higher. And if your capital is very limited then options may be the only path for you. If not, the underlying will provide a better profit (not ROI)...

If you're trading intraday, consider trading the underlying rather than the options. As Wayne mentioned, you deal with far better B/A spreads... and you don't have the problem of a lower DELTA. IOW, if you buy an ATM option, it's delta is about .50 so you're going to make 50 cts on a $1 move...

Though it's not significant in this example, closing quotes can be misleading (particicularly with illiquid options) since the last trade for the option may have occurred long before the close and as a result, the pricing relationships may be off. You select the strike based on the amount of the...

Thanks for the response. But what does this mean? IOW, what hardware and/or software is necessary to establish the link? thx

Hi, I am currently using the IB/DDE conection to Excel. Works great but I'm looking to add a second computer (also a dual monitor set up) fo an assistant to update my positions in Excel while I focus on trading. She would use one monitor while I would have the other . Is there a way to...

There's no fear in simulated trading. If you lose 10 grand, no biggie. You can risk more, make more, and tolerate larger draw downs When hard earned money is at stake, there are real consequences and therefore, decisions are different. Simulated trading is good for learning but...

I started dabbling with options 30 years ago and began serious day trading 5+ years ago, shifting more and more away from options to equities. AFAIK, it's very hard to make a living solely from this, well, at least until this year. Having been more on the short side than long for most of the...

You can spend a lot of time calculating possible option values and determing what the option will be worth at specific price and time intervals and then set P&L stops. Personally, I think it's not the best approach because it's the stock's move that is the primary concern. For example, if I...

With whole stock splits (2:1, 3:1, etc), the number of contracts is increased and the strike price is reduced. So a 2:1 on a $30 stock results in 2 contracts having a $15 strike (100x1x30 = 100x2x15). With fractional stock splits (3:2, 5:2, etc), the number of shares covered per contract...