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IV Trader is the man for these (I'm just a disciple:->). He has an RC topic somewhere on ET. An RC is a calendar spread (same strike) where you're long the near month and short a more distant month. You need some combination of IV contraction and movement away from strike so that the far...

Just curious. Why would you not want to pay on a per-contract basis for option trades? What's the advantage to a minimum commission broker?

That's what they're currently listed in the news but as you noted, dates often change. I doubt that Texima is going to be a blockbuster drug since it's merely a combination of Imitrex (Glaxo's migraine medicine) and Naprozen (Aleve) which is OTC. Imitrex loses patent protection within 2...

My 2 cents is that I'd I'd pay more attention to what they say in the conference call and the reaction to it than to yesterday's open interest changes.

I was lost and now I am found! Thanks for the kind words. It was part of my parole agreement! LOL. Joshua Fry was a real piece of work. Vehemently defending his option posts while reeling in victims for his financial scam. I wonder if he found a wife named Bubba during his Federal vacation...

Not that I would have any use for it but if I were dabbling in calculating ratios, I'd want to know what percent of my capital per trade was being eaten by commissions, eg., how much is my overhead per trade? The simplest thing is to find the lowest commission schedule with no minimum ticket...

How did you know what I do for a living? :confused: (g)

If we're talking about RC's, by definition, it has to be a credit and more so if you're ratioing it. That credit is what you're trying to capture. No, I gave up the Yahoo circus a few months back. Absolute morons ruined a good forum for exchanging ideas. Do I know you by another handle...

Reverse calendars (RC's) can be very interesting near expiration when you're dealing with earnings announcements. You're making a short term bet that you're going to catch a collapse in volatility or a substantial move in the underlying away from the strike. Or perhaps a blend of both in which...

My favorites are noobs buying options that are either adjusted or there's a pending special dividend. Can't miss, free money deals turn them into the meal. LOL...

CNBC has had several recent discussions on ASCO insider trading. Apparently the conference sends out briefs to it's members but not the press. They include a warning not to trade on the info or share it w/ people who would trade on it but .... A much safer game plan is to trade the stocks...

Regardless of what approach you have with earnings plays, you're right - it is extraordinarily time consuming. I have reduced the time spent by screens such as minimum stock price, minimum IV, etc. I also avoid most non-Naz stocks because supporting positions in the pre/post market is tough...

The best time to roll is when you are going to pay the least for buying back the short call and get the most for selling the next call. Since you don't know when that point will be, the best thing to do is to monitor the spread b/t the two months. If it's widening, then time decay is...

You must report all closed positions... unless you like bread and water and a wife named Bubba :)

Setting up too many of these spreads would be reckless. You can do just about anything that you want with options as long as your timing and selection/direction are correct. But since very few, if any, consistently nail those criteria for successful option trading, you should also have a...

The net cost of a buy/write is the cost of the stock less the premium received for the call sold. The strike is used to determine the point at which you achieve the maximum profit (above) and where you start to give up some of the actual or potential profit (below).

LOL. That's often a good idea around here

A naked put (NP) is equivalent to a covered call (CC). Since you are a self confessed newbie (g), for the time being, consider each NP position as a CC and ask yourself, would I be willing to take that buy.write position (ignoring subtle details like margin, sufficient cash, etc.). The reason...

Very good example and explanation of portfolio hedging. But I'm a bit confused by this statement and I'm not sure how to express it. In terms of delta, at Mar '08 expiration, the delta will be 1.00 and there will be a 1:1 recovery for drop. But at that point in time, there will also be 55...