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The no/low cost collar is viable if you're willing to give up the upside (the short call). This converts the long position into an equivalent vertical. If the underlying collapses and you believe it can recover, you can roll the collar down (or just BTC the puts), lowering your cost basis...

I listened to a couple of their pitches. In one, they cited an example where they sold naked OTM $100 puts on a higher beta stock. When it moved against them, as it approached the strike, they created a 1x2 backspread by buying two $95 puts of a nearer term expiration for a cost of just less...

For many years, I have used the OptionXpress web site during off hours to evaluate the potential performance of different option positions (covered calls, short puts, vertical spreads, etc.) for the entire chain. Because Schwab is taking them over, the OX web site is down. I don’t know if this...

Setting up a multi-legged combo order in IB is an exercise in futility (butterfly, condor, etc.). Instead of a simple pull down menu, you have to every detail of every leg. And good luck if finalize the order creation and you made a mistake - no way to edit and it's back to square one. Ugh...

SPY is 139 and you write a May 128 call for 11-1/4 pts. No problem if SPY stays above above 128. You keep you 1/4 pt... well, some part of it due to 3 commissions. But suppose it's Aug of 2011 and the SPY drops 20+ pts in a week. At expiration you keep the 11-1/4 pts but now you're net...

Some trade with IB and use another broker, popular with locals for their analytics :). Otherwise, you have to utilize something outside of IB for good risk graphs.

The best option result is primarily due to the size of the move and the time it takes to achieve it... and to a lesser extent, the amount of slippage and IV change, if any. Being outright long gets you more of the move but is more susceptible to decay and being wrong. Spreading reduces the...

In your original post, you had had orders to open and sell the same options. As others have inducated, not allowed. In this example, you are only on one side of the market.

Everyone's risk tolerance and approach to reward is different. You indicated that the position is profitable. I think a good rule of thumb is to try to avoid turning a winning position turn into a loss. That's easier said than done but the effort improves long term net profitability.

Who has a clue where it's going post EA? Not me :) Yes, it's a vol crush play for Apr. You'd place it at the UL's price in order to capture the max TP (ATM). When to put it on is another guess. IV expanded nicely this AM. It may continue thru Monday. Or not. Sometimes they contract...

If you like butt cracks {_X_}, interesting possibilities with Apr/May CREE options. Month to month skew has widened another 15 BP's over the past few days. CREE's EA is 4/17.

I have an orange that's worth 50 cents. Next week it might be worth $1 or it might very well be rotten and worthless. What should I do?

How can I say that $ .25 is not much of a gain??? I can say that because this is the internet where anyone can say anything that they want to. :) But in reality, I didn't say that. If you followed the context of this thread, you'd recall that the OP indicated that he has a simple...

In response to MushinSeeker's question about whether IB or TOS is better at getting a fill at the midpoint, atticus stated: "No question that IB will get you filled more often at midpoint of NBBO." Why would I care what IB, TOS or any other broker is doing "internally" to get me that better...

The morning of the EA, IV of the near month almost always drops like a rock. More often than not, the 2nd month's IV takes part of the morning to hit bottom so that many of these positions which are outright losers from 4 PM close to 4 PM close are winners in the AM if you cover the long leg on...

I've always used SMART routing. Have you (or anyone) tried any specific routing and achieved a decent number of fills while getting rebates for adding liquidity? IOW, has anyone found routing to be more effective?

Why would IB get you filled more often at midpoint? My *assumption* would be that good fills are a function of who's bidding and offering what and at what price when you place your order. What advantage do they have?

Here's a possibility to play with: ISRG's EA is 4/17 and its skew has opened up a bit. If it widens some more and B/A spreads in real time are more lenient, it might get interesting. At present price, I'd look at something like an +12-10-10+12 Apr/May 540 double straddle or an Apr...

That floored me the first time it happened to me. Can you imagine that? Getting paid by the broker to trade? :)

Their company hours don't match? LOL.... I've used them for 4 years and their software is spot on. I keep my own daily spreadsheets and every year I tear both apart because they never agree. And yes, my spreadsheets are always wrong :) Thier customer service has always been available...