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    How to manage risk if I am picking up coins before running trains?

    If the odds are 1 in 100 that something bad will occur and you're the ONE then the odds were meaningless. You may be right that MOST price-negative Black Swans come out of a bear pattern but MOST implies that SOME do not. You have every right to place your bets as you see fit. I retired...
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    How to use MACD as confirmation to EMA cross

    Indicator based on moving averages lag the market. MACD is one of them. Lag means in late, out late with a higher likelihood of missing a chunk of the move as well as whipsaws in non trending markets. The reason for the buy above zero criteria (or below zero for a short) is the nature of...
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    LABD Option Question

    You could be the next Miss Cleo Exercise the calls and simultaneouly sell the stock, nabbing the ITM amount. Are you offering a subscription service yet??? Prices fluctuate. They can pop and drop briefly. And then there's the FANTEX (Fantasy Exchange) where all internet traders get the...
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    How to manage risk if I am picking up coins before running trains?

    In 1987 it didn't get there in one day, until it did. From mid August until expiration Friday on 10/16/87, the market dropped about 18%. But 10/19 was a whole nuther animal, dropping 22+% in one day. Market makers walked away from their posts. Stock and option B/A spreads were Holland...
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    Iron Condor - Credit received vs. Profit in Analyse chart

    It's really simple and no modeling necessary. You have a risk of $2 per spread in either direction. You received a 7 cent credit which is you maximum profit. Your maximum risk is therefore $1.93 Picking up pennies in front of ... ? You might consider the possibility that if it's not human...
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    LABD Option Question

    Hope springs eternal :->)
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    LABD Option Question

    Your screen shot shows an IV of .54 for your call If you plug that into a pricing model with the other expiration info, it suggests a price of 8 cts. With LABD at $5.37, your call now is $0.00 x $0.15 with a mid point of $0.075 My chime is that based on that, I don't think that it should be...
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    My stomach!!!!!

    You should have seen a doctor sooner for two reasons. First is relief from 5-7 dumps a day. There are numerous antidiarrheal medications, OTC and prescription and something more effective might have been prescribed after a proper differential diagnosis. The second is that GI distress of...
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    I love IB/TWS...

    Go for it but realize that the BBB has no teeth. I've gone round and round with Dell with proof of my being correct and despite it all, if the vendor says says Nyet!, you're SOL.
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    Is selling options before earning Good Strategy?

    Someone always loses - it's either a realized loss or an opportunity loss.
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    Is selling options before earning Good Strategy?

    As I wrote, include some with strikes that were near the money a week and two weeks ago. Then graph the two week straddles (intraday, not closing prices). They were ATM back then and by looking at their performance over the past week or two so if there are any gamma gains, they will be evident...
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    Is selling options before earning Good Strategy?

    I'm not going to pass judgement on the performance claimed since I have no clue if the numbers claimed were real time and factual. What I will say is that I have looked at the concept of buying straddles pre earnings many times and there are far too many losers. Perhaps someone with an edge...
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    How Hedged Am I in the Pre-and After-Market Hours?

    Minimum margin maintenance level for equities is 25% (brokers can require somewhat higher) so you have a lot of buffer against underlying price movement. If you have long stock delta hedged at 1.0 then you either own a deep ITM near 100 delta put or more than one lower delta puts. If the...
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    IB Strategy Builder question: the iron condor

    OK, buckle up! I have no clue what the Strategy Builder is. In the Trader Workstation: Type in your symbol and hit <enter> From the menu select: COMBINATIONS then OPTION COMBOS (SMART) That opens a screen that has 3 choices across the top 1) MULTIPLE 2) STRATEGY 3) PAIR OR LEG-BY-LEG...
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    Opinion: The tax bill deserves to die

    Florida’s local tax burden is the 2nd highest % in the nation. Florida classifies about 40% of its state and local own-source revenue as non-tax revenue (7th largest % in the nation). It relies more heavily on transaction taxes than most states and they account for over 80% of all of...
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    Partial TPs/Scaling out/Exit half, your thoughts?

    Preferred stocks provide a much better yield but given that they've run up about 15% since last December's low, it's hard to find many of investment grade that are trading below par... or slightly above with a good call date.
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    Partial TPs/Scaling out/Exit half, your thoughts?

    Pretty much the case but bonds don't pay enough.
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    Partial TPs/Scaling out/Exit half, your thoughts?

    I'm just a retired retail investor/trader who has acquired enough to provide for my remaining days (2008-2009 put me over the top). Making BIG money is no longer my goal. Keeping it is the priority. So I "play not to lose", trying to make "some" while "hedging every which way". As long as...
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    Options for bear market ( pun intended.. )

    Sorry, my bad. The long/short correlation portfolio was with financial stocks (not options) which were being hammered during the GFC melt down. My option comments applied to defending a collapsing combo such as a bull put spread.
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    Options for bear market ( pun intended.. )

    In 2000 it took two plus years to go from top to bottom and in 2008, it took 18 months to go from the top to the bottom (both down 50+ pct). You don't have to determine the magnitude of the drop or guess when it will end. You recognize market deterioration, you take your short position and...
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