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Ummmm, isn't over night half a day?

Sorry, I'm only familiar with The Bronski not The Bwolinsky. BTW, the P-1 rule is also acceptable since it indicates timely poitioning 1 day before the Peak day. I'm scouring the web looking for the Size Rule (although I've heard that Size doesn't matter).

If the two UL's track each other at an exact ratio of 10:1 and IV's are the same, the options should track pretty close to 10:1. IRL, they don't plus spread size varies. I assume there may be other small discrepancies as well. So I wouldn't expect an exact 10:1 correlation. But close. 6...

I can see that interpretation if you ignore the OP's criteria that all other parameters except for the underlying price are equal. Obviously, implementation may be different based on different behavior of his $10 and $100 stocks but if all else is equal, option pricing is linear with respect...

The appropriate rule to use is the Nth Day Rule which only buys on the lowest day of the series. The -Nth Day Rule applies for shorting extended up moves :)

Averaging works when the underlying cooperates. Long spreads achieve lower cost positions (less time premium) not lower IV. Playing with low liquidity series gets you hard to adjust positions.

I really don't know what any of that has to do with the OP's question. His question was that all if pricing parameters other than underlying price are equal (such as volatility, time to expiration, etc.), should there be any difference in the way the options perform. IOW, will the respective...

The rule of N+1 states that if the rebound doesn't occur on day 8, it might occur on day 9

As I mentioned previously, if all pricing parameters other than the underlying's price are equal, then a similar pecentage change in the UL will result in the same percentage price in the options. You can verify this for yourself with an option pricing formula.

This will be the 4th year that I have used TRADELOG to prepare my Schedule D. I do a ton of small trades. Because I scale in and out of positions as well as up and down, I have a lot of wash sales which are almost impossible to manually reconcile. It downloads a 1,000 trades in minutes and...

My concern would be what the EOD quote is. If it's option's last trade, then the relationship with the UL's close may be decoupled and inaccurate. If it's the closing B/A quote taken simultaneously with the closing price of the UL, then no problem.

If all pricing parameters other than the underlying's price are equal, then a similar pecentage change in the UL will result in the same percentage price in the options. For example, if you have a $10 and a $100 stock with the same IV and expiration and each moves up 10%, the 9.5 and 95 put...

http://www.crimsonmind.com/optionsR/index.aspx Used to be free. Now they charge $49/month, free 2 week trial Don't know if that's reasonable to you :)

It could be worse... you could be the turkey. In a pinch, you can put the turkey in a sink filled with COOL water and it will defrost a lot faster. Do that only right before cooking. They say that this isn't the safest way to defrost but I've survived a coupla decades of doing it when faced...

There's something very wrong with your reading comprehension if you think that I said that shorting $1 stocks is PRACTICAL.

The option market is zero sum. That person's portfolio isn't necessarily zero sum if they're utilizing the UL because the stock market isn't zero sum.

But that's exactly what you did. You presented a single scenario to support a larger premise. Yes, there's potentially a lot of pain in shorting a $1 stock but realistically, how many are there in the DOW, S&P 500, RUT, etc? And how many people who routinely short stocks short $1 crap...

A lonnnnng time ago I had a mentor. I once presented him with what I thought was a well thought out theory about gold, energy, interest rates and asked him why I was having trouble with some of these trades. His response was simple: "Understanding it will only confuse you. Just trade the...

It depends on what you're talking about. With options, selling puts nobligates you to buy the underlying and that's certainly less risky than just buying the UL outright. With equities, excepting EA's and takeovers, they drop far faster than they rise and if you're a long only type, you miss...