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The Poor Man's Covered Call with a high delta LEAP will reduce your capital and lower your risk. The problem is that the deeper ITM it is, the wider the spread. To diminish that, either (1) you have to work the order and hope for a better fill and, (2) for many stocks, look at a deep ITM call...

Is your source of back test data reliable? Traditional EOD data is often stale (last option trade does not match closing price of the underlying) and the B/A often widens at the close (last B/A at EOD). Something like TOS's ThinkBack might be more reliable.

A root canal is a bad test example because more often than not, the manifestation is a dental abscess observable on the x-ray and by that time, the nerve is dead. Dead nerve = No pain. The real test would be getting a 'live' tooth drilled for a deep filling or a crown. In that vein, I know...

LOL. You asked for information that might explain the pricing discrepancy of the option you bought and posters want you to justify why you took that position? Shaking my head and wondering why some people need to reply...

You've got that backwards. You can ignore the wash sale all year long and trade as often as you want, booking gains and/or losses. At the end of the year, the net carry forward wash sale loss is the issue. If you want to deduct it this year, you cannot re-establish the same position for 31...

One calls a tax trading expert to get professional advice on a problematic filing issue but you can screen a bad one out who gives a wrong answers? Most investors/traders don't have a clue about the depths of wash sale rules and if the guy answers a few gimmees over the phone, that does not...

If you take the loss on the position now, you will have to wait 31 days before re- opening it. otherwise, the loss will not be deductible this on this year's taxes. With equities, there is no prohibition against taking a similar position in a different equity. I don't know if this applies to...

A wash sale is only a problem for the 30 days before December 31st and therefore becomes a carryover violation. If you are completely out of the stock and/or options for 31 days after any losses realized in December (including carry forward losses from earlier in the year), it has no impact on...

An option dropping from 60 delta to 50 delta will lose more $$ than dropping from 50 delta to 40 delta.

If you buy a new car, paying more for it at one dealership guarantees that it was built better !!! :D

IV skew applies to the volatility smile across different strikes. You're looking at intraday price change of a single strike so AFAIC, skew has nothing to do with this.

Your numbers make sense. The closing quote of $1.55 x $2.25 does not so I'd attribute that to: 1) a stale option quote 2) the effect of the spread widening on one or both sides when the market closes 3) an IV drop of .03 I'd lean toward #3. You'll find out Monday morning

For a lot of people, by the time they have gotten to an acupuncturist, they have tried many other modalities seeking relief. I'm one of them. After a nasty car wreck many years ago and a parade through different specialists, I was one of them. Though my thought process is geared toward...

Yes, it does seem like gibberish. OK, muddying the waters a bit more... Federal Reserve Board’s Regulation T dictates the limit on how much an investor can borrow. For equities, this is up to 50% of the price of the security purchased and the broker can require more than a 50%. You can read...

If you had a clue about how the stock exchanges handle share price on the ex-dividend date, you wouldn't be asking such silly questions.

Reg T determines minimum margin. Brokers have the right to require more margin than that. Google "TD Ameritrade Margin handbook" for details. It might help if you indicated what your 3 option positions are so that the $2,000 "BP Effect" can be verified ---> strike(s) and premium, not the symbol.

In all fairness, if it's a momentum play, say breaking news, then you have to pay to play in order to hop on quickly. If it's positional with a longer term time span, it may pay to work the order. It depends on the circumstances.

Your replies are like a work of art with all of the various Emogi colors. Now as for that extra $23,400.00 , you should really take a pass on that because think of all of the extra taxes that you're going to have to shell out. (_x_) :D

AKA: A Rising Tide Lifts All Boats.

Make it a habit of closing those near worthless short options. Apart from the margin issue, some have a perverse way of reincarnating and taking away good money. Offer a penny or two for them. I have found that I get better fills with spread orders than single legs - maybe because the...