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I'd suggest using long legs of mid term duration instead of LEAPS (4-9 months). Since they cost less, blow ups should be less painful. Yes, they cost a bit more per day but that's not that significant compared to the blow up cost. And if your short term writing is successful, you can roll...

And here's even another one: http://clearstation.etrade.com/cgi-bin/Itechnicals

Butterflies often work well in earnings situations where the premiums are inflated (I don't know what the Dell numbers looked like). Crazy news inflated IV situations can also be good. I had some butterflies last week on CFC that cost a dime and worked out nicely. The problem is that they...

Invest a coupla hundred bucks in the leading option texts. Spend a summer at the pool with them. Read everything you can find on the net Take the difference in their mentoring fee and the book fee and trade your brains out until it's gone. Then you'll know what to do and what not to do :)...

The best time to sell is when the LEAP has the most profit :>)

I'm not a fan of using LEAPS for the long leg of a diagonal because a big move in either direction will cost you more than a midterm leg. Granted you pay a little more per day but a successful writing program will make up for that. I'm also not a fan of rolling a short leg of a spread (or...

I think that no one is taking the trade because who wants to give the Mkt Mkr his pound of flesh? As I type, I see up to $2 spreads in your puts. That's quite a hammering to get out. As you indicated, waiting for expiration is prudent. With DB down more today, I'd put in a low ball offer...

He's long the 170 put since he said in his original post: "I can exercise the 170s as long, but not the 150s as short." Yes, the options are illiquid with wide spreads. The Oct 150/Sep 170c diag would cost 70 cts. which isn't much better than closing the 20 pt. put spread for the natural...

I think the long/short legs are the other way around but that's just details (g). Adding the synthetic diagonal to create a lock is a good idea but it costs almost as much as just taking the Holland Tunnel wide B/A's for closing the current put spread.

Other than being lucky enough to be assigned early, I'd put a closing order in for a credit of 19.80 and let it sit for a day. If that doesn't work, drop it by a dime. But I'd go no further than the cost of the Sep 150 call since you can buy that for 40 cts to lock in your gain. If you...

stock - call + div - carry cost = - put

If you want some real laughs, do a search for posts by STUNATA_ONE, STUNATA_TOO and DR_RUTH_LESS. I think that for the most part, they posted before your time there and were before the hate filled rants were a steady diet. OK, enuff said. :)

A unit of cash, a unit of cash What an idea, it's so brash! Follow me, all you heathen Spend a year, hope to break even. Guard your stash, pray no crash Be like Monkey, be a horse's ash! Greetings and salutations! :cool:

Near and somewhat OTM (out of the money) options tend to have more activity than ITM. And it may have been a no brainer trade not everyone is as competent as you :) Also, there are more complex option strategies than simply buying options. If you understand covered calls, the mirror image...

LOL. Yes, I have an advanced degree in Yahoo Putz! :) And who would you be?

With an option pricing formula, you can determine precisely what the price of the option will be after a 10% move. All you need is the amount of price change, days elapsed, and future implied volatility ... plus a small adjustment for the bid/ask difference/ These are all just a coupla minor...

What you need to learn is: 1) The relationship of option premium to stock price 2) The effect of time decay 3) The effect of change in implied volatility The short answer is yes, you could have done far better with the puts than with shorting the stock. Options provide leverage...

Some years ago someone did a study of the results after stock splits. The results? It was rocket science stuff !! (g) Companies with good earnings went up and vice versa. The kiss of death? The reverse split... sort of like a step in the fabrication of wallpaper :)

Covered call sellers never lose on their options. It's the stocks they have the problem with :)

Except maybe when it comes to buying shoes :) Funny line, Phil!