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In that scenario your only issue might be margin.

A recent article in Fortune magazine profiled MF money managers who were among the top performers in '08. Problem is, they ONLY lost 20-25% when the S&P was down 37% !! Harbour claims to have been near breakeven in '08 and the only way that could happen was some combination of option...

Glad it's resolved. Closing quotes are often unreliable. You have to look at these things in real time. Then, if the spreads are still Holland Tunnel wide, the options should eb avoided.

In a perfect world, this makes sense... but I don't believe that you can trust much of what a broker says. This isn't sour grapes because I've been ripped off. It's because with a few friends in the business and as a former IPO whore in the 90's, I've dealt with literally 100's of brokers...

A quick look at your link indicates that there are 3 elections. For the all cash option, your numbers make sense. For the two involving shares of PAAS, you may have some interim risk with that. I don't know what, if any time exposure you have from election to completion.

It's a bad data error on the part of the option exchanges :D

How big is the spread that you think is criminal?

bc1, Thanks for the SEC, FINRA and SIPC suggestions of. Would appreciate if anyone else can suggest other directions as well. The problem with the broker that he's pushing low rated bonds which pay more but are one downgrade away from junk status. The bonds of the last company that he...

OK, this is one of those "I've got a friend" stories... My firends (married couple) inherited some money which while pending estate settlement is still in the hands of the original broker. Mostly muni bonds which they realize are low B rated and undiversified. We're on different planets...

Eat like a bird, sh*t like an elephant.

What if beyond infinity is a black hole?? We'll all be sucked in along with our portfolios. It'll be like the blind leading the blind!!! OMG, OMG, the sky is falling!

You're absolutely right... infinite loss is a scary thing. I'd be far more fearful of 100 short shares of AAPL going from 450 to INFINITY than 100 long shares going from 450 to ZERO. BTW, can you name any stocks that have gone to infinity ??

The best trade is the one that makes the most money. Which one that will be depends on a number of factors - size of move, time until move, R/R of strategy chosen, IV change, etc.. All of these will only be known in hindsight.

SHEER NONSENSE

+1

That depends on which page of this chain you read.

You sold 90 APPL Feb 470 calls and AAPL has risen from 420 to 450? Well, it could have been worse. It could have been me!!

I would imagine that it works the other way as well. More people chasing the same opportunity reduces the number of opportunities per, thereby diminishing one's success. The nature of the market also affects the success of a strategy. That's highly significant with options. You can also...

Bigger concerns than intraday decays are the B/A spread and commissions. And then there's that little problem of getting the direction wrong and losing a chunk of premium.

Analysts are never wrong. It's usually the fault of the liberal media (see 07-08 market decline) :)