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First you need to learn about options. Try "Options As A Strategic Investment" by McMillan. You can pickup a used older version for $5-$10. Buy the more expensive latest edition if/when you graduate to more sophisticated strategies.

What does your height have to do with this ??? :p

Makes no sense to me since it's yield not total return and if non sheltered, it's an unnecessary taxable event. In addition, it's priced into the options.

Nothing helps with stock specific bad news :wtf:

Why do you think that the dividend is relevant?

Thanks for the info ET180 and sprstpd. I'll look into it.

As beerntrading stated, the index hedging will not help you if the bad news is stock specific and only drops it. It will help with broad based decline.

There are a variety of ways to hedge. Let's tackle one as an example. Suppose XYZ is $50, it's Nov expiration, the one month Dec $50 put is $1.50 and the Dec $48 put is $0.50. The bullish vertical nets $1 and has a risk of $1. Doing 5 of them provides a $500 credit which is the...

The only time I qualified for tiered pricing size was in 2008-2009 when it was like shooting fish in a barrel. So at this point in time, I'm stuck with the .005 per share. However, that rate still entitles me to liquidity rebates and occasionally, I get paid to make the trade (negative...

Yes, tiered pricing is lower but I think that's only available for higher volume traders - and I doubt that it applies to most here. I misspoke. There's no 'commission' for assignment and exercise. There's no regulatory fee for buying so buy side assignment/exercise is 100% free. There is a...

I get it. You don't like IB and you want to bash them but the claim that "they could easily end up being far higher than everyone that they're showing (your chart) as more expensive" is nonsense. A fee per share like IB is better if you trade less 1,000 shares per trade. A flat fee like...

When IV is higher, spreads offer a greater credit and therefore lower risk. So that implies that selling is better than buying at that time. But with higher IV, you get higher delta and therefore, the likelihood of greater movement and more binary results (win or lose) so does the latter...

Adding to ironchef's reply... From the CBOE: The CBOE's BXM index represents the returns of a monthly buy-write strategy where the S&P 500 is bought and one at-the-money call is written. Over the past 30 years, the S&P 500 has returned an annual rate of 9.9% with a standard deviation of...

You're right but let's not overwhelm stockmarketbeginner at this point. Otherwise, he'll give it all up and start selling on Ebay :->)

I've experience the same thing with IB. Their "Complex Order Margin" numbers make no sense at all. I'm never at the point where that excess reduction in margin affects my trading so it's no more than a roll of the eyes and wondering WTH?

If you trade larger blocks of low priced shares, you're better off at a fixed fee broker that charges $4.95 per trade. If you want to scale in and out of positions, IB charges 50 cent commission per 100 shares ($1 minimum charge per trade). So five trades of 200 shares is the same $5...

You need to spend some time with an option book to learn the basics.

There's a lot of truth in what you said but blanket statements as such are not true. There are a number of option strategies that provide yield or similar return as stocks yet diminish the risk. As for the stock market not being a zero sum game but the option market being one, how is that...

To add to jimmyjazz's reply, familiarize yourself with delta which is the amount that the option is expected to move if there's a $1 move in the underlying. The delta of an ATM call is about .50 so in order to make the same $1 from the calls for a $1 move in the stock, you'd have to buy twice...

Your probability of touch when the trade was executed was over 1 in 4 so the 1 out of 6 trades failing is nonsense. After Friday's drop, your POT is double what it was 2 weeks ago. That makes your initial incorrect assumptions even worse. Given that you claim that you will cut your losses...