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That's not necessarily true because it depends on what your strategy is. For example, if you have a long delta neutral synthetic straddle, you want the big move but smaller back and forth zig zag will also reap reward. In this situation, it's time decay and IV deterioration that get you.

LOL. Yeh, there's a $10 fee if you don't generate $30 in commissions per month. Hmmm, that sounds more like a hobby than a trader :)

In the absence of special factors (different implied volatilities, pending dividend, hard to borrow stock, skew) , an equi-distant call would be valued higher because of the carry cost (see conversions and reversals). So read a bit about conversions/reversals, implied volatility, skew and...

Actually, it's 50 cts per 100 shares with a $1 ticket minimum. This makes scaling in and out feasible since you're not getting hit with that pesky fee per trade thing. 1,000 shares in at once is the same $5 commission as 200 shares at a time, done in 5 transactions. I'm not sure if they...

Most questions aren't really dumb because it's just something that someone doesn't understand. OTOH, many answers are another story :) There are a number of reasons why a call goes up while the UL goes down. The most common are what you've mentioned - earnings, dividends, news. Others...

LOL. Ask any former Yahoo BB participant about that one :)

Assignment and exercise is like buy/sell to close. It's a single transaction unless of course, you're have partial assignments on different days. Best thing to do is call Scottrade. Sorry to sound like I'm hyping IB but assignment and exercise are free there (US stock and index security...

I don't know if it's industry wide or broker specific but there are various algorithms for disguising order size: Hidden Order - not displayed to the market Iceberg Order - only a portion of order displayed Scale Orders etc

What's best depends on the size of the UL's move as well as how long it takes to occur (decay). IV can affect results as well. Your comparison isn't a good one because the OTM trader is buying to profit from an up move and the stock holder is selling ITM because he's likely to be protecting...

The IV of various strikes is a variable moving target throughout the day so I'm not sure if using an IV ratio doesn't jumble your data points. As the UL rises ITM, the lower strikes have higher deltas and higher premium but the pct of change in delta and the pct change in premium is greater...

You buy the 810c and short the UL to be neutral. The 810c has a lower delta than the 800c. If the UL drops, the 800c's delta drops more than the offset number of short shares makes. For example, say the respective deltas are 60 (800c) and 50 (810c). Buy 810c and short 50 shares. UL...

With your present skillset and current state of mind, you have no business trading. Even more so if you were dependent on that money for everyday living. If you decide to continue or resume at a later date, you need to improve all aspects of your approach, especially your money...

Mortgage the farm and give it a whirl. Let us know what the good life is like. :)

Less than 100 delta written calls doesn't offset 100 delta stock loss so it's a reduce the pain strategy in a bear. In order to succeed with CC"s in a falling market you have to trade against the position/adjust or have the UL cooperate. On it's own, it's a loser.

The risk is in owning the underlying. Because you limit the upside by writing the call, you have a poor risk/reward ratio - eg. limited upside potential almost all of the downside. In addition, unless you have better than average selection techniques, you'll end up with a portfolio by...

The delta of that option should be pretty close to 1/2 so if AAPL drops quickly to 380, you should amke another $5-6 (assumes that IV remains the same).

The sum total of the deltas will be greater than 1.00 Since both are ITM, that means that a move to either strike will lose money, assuming no passage of time (decay) or advantageous benefit from change in IV. Outside of either strike, it gets worse. Successful timing is the only way that...

Can you name a few stocks that have gone to infinity? Even close to infinity?