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A plain old vertical spread can have a 3:1 reward/risk ratio. But expected return is a very different creature.

Still chasing that dream, eh? (wink)

There's no simple answer. Trading is trading but options are different than equities (IV, delta, tiime decay, leverage, et.) so there's a learning curve. Some find it easier, some find it harder. IMHO, one thing is for sure... active trading experience with equities (or anything else) is a...

The most efficient way to enter into a condor is to enter the 4 legs into one trade. If you are comfortable with and disciplined in legging in, break the position into the respective component trades. In some cases there may be more than one way to break them apart. For example, an iron...

That's a good idea and thanks for posting the link. Obviously, this is for IB users on;y (voting)

And I always thought that Churning was about making butter and Painting The Tape had something to do with home decor... :)

If it's a margin account with more than 25g at all times, you can day trade to your hearts delight, subject to a max of 4:1 margin intraday. Brokerage firms can have less lenient margin levels than Reg D allows. Basic pattern day trader rule summary: An NASD & SEC rule that applies to...

10 pct? You greedy little buggers. One pct in either direction will make me wet :)

Hey, nice sand box :)

Market Lizards is a winner but what I feel is: "The Stock Broker Training Program For Used Car Salesmen" :) Always remember that 2 out of 3 make money on every trade... the broker, the brokerage firm and sometimes, the client.

With reverse double calendars and reverse double diagonals, you need some combination of IV contraction and/or price movement in order to go positive. And the sooner, the better because time is not on your side. What makes them more attractive closer to expiration is that the cost for the...

I didn't see anyone named Dick posting. Did I miss something? (scratching head) :D

I use Interactive Brokers because I trade cleanly (don't need hand holding) and I trade high volume (low commissions with no minimum per trade). OK, small technicality. There's a $1 minimum commission per trade. Therefore, they're the best for me. Other brokers offer different tools which...

Double diagonals are more suited for situations where you're close to expiration, there has been an IV expansion in all months and you have an imminent news release that you expect will drive the IV down and the price away from the straddle's strike. IV contraction is a big problem since it...

100 pct??? Hey! Get in line and behind me !!!

Yep, It's also possible to be assigned if your option trades ITM during the day (at a discount) and expires OTM. The bottom line is that if you have a pin risk situation and you don't want assignment, deal with it before the close.

LOL. I hate to break the news to you but the more taxes you have to pay each year on capital gains, the better it is for you.

If you don't lock in the cost of your straddle and the underlying range trades, you're faced with double side time decay. W/O money management, that will eventually turn the position into a loser. The other consideration is IV contraction. In order for your strategy to work you need some...

>> I am looking for the most conservative option strategy that will allow me to swing trade equities without having full exposure. The problem with traditional money management is that stop are tough to implement in a market that can have huge overnight gaps. >> There's no cut and dried...

Thank god that rock star traders making hundreds of thousands per transaction can break away from the money train to edumacate us po folk.