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This reminds me of when I first began to learn Spanish (still working on that concept). After DL-ing a bunch of vocab lists from the web, I thot that it might be a lot easier to find a good book. While mucking around Amazon looking for something else, I discovered that the online version of...

And if you're old enough, you might remember Uncle Tennis, played by Hans Conried on "Make Room Fro Daddy". :)

Multiple "so true" statements in this post. Most noobs are attracted to the flame of dreams seeking instant gratification. Few realize it's a long term project to hone your skills while grinding out consistency. I traded slowly for a coupla years, aiming to at least beat MM rates while...

Not the case here but if the UL was below the strike before the move, with a move up to strike the put would have lost more (intrinsic) than the call gained (extrinisc). But since you said ATM, the most likely explanation is a drop in IV.

Did you get lost on the way to the Shenzhen Stock Exchange?

Options are a racquet and you have to be careful that they don't squash you.

I trade at IB and they have a cancel fee. That's life. OTOH, there's a credit received for contracts filled and it's applied toward that fee. Honestly, I think that it's penny wise, pound foolish because they charge 25 - 70 cts per contract (commission) unlike others who charge a base fee...

Liquidity is available until the market closes. The question is, what will you pay (or receive) when the close is imminent? A better plan might be to work the order all day. Assuming UL price is relatively stagnant, ask for something a bit better than the midpoint and then gradually reduce...

I think you're a bit lost in the weeds :) Forget yesterday because for options, ex-div is a quarterly anomaly. The short answer is that in a perfect world where all strikes have the same IV, you take your position, you get a one pt move immediately and IV remains the same, then the further...

I leave it to you to edumacate him as to why exercising his long call to capturie the dividend, selling the stock and buying the same call back does not reduce his risk. In one era and out the other :)

The content of you posts is the judge of that.

You feel better now?

There are calculators and pricing formulas all over the web. Use GOOGLE. Another one is the Options Toolbox offered by the CBOE.

In order to do that you would have to make an assumption for what the volatility was X days ago. That would give you an answer but it wouldn't necessarily be the correct one for that day. Here's a calculator at IVolatility. You might have to sign up (it's free) to see it...

Maybe we need and IDIOT trader web site :)

I don't know what "my call strike stays the same" means. I don't think you meant the call premium because then, everyone in the world would be buying ITM calls that don't lose money when the stock goes ex-div and shorting the stock that does lose $1.40 due to ex-div. Ahhhh, the FANTEX???

Buying options 33% OTM two days before expiration for a steenth. Strike out a lot and get to brag once in a blue moon about a winner. Sheer genius.

Ergo, that's why if you like the position, you leave it as is. Exercising and rebuying costs slippage and add'l commissions and adds overnight risk since the open may be lower. What are you gaining in return for that? Zilch. OTOH, the AM open could be higher and thru dumb luck, you do...

Capturing the dividend, closing the position and reopening it does not alter the risk/reward of the position. Based on your estimate of the call's post ex-div TP, it modestly lowers your profitability. In addition, you now have a taxable event from the dividend, some add'l B/A slippage and a...

Dividends are payment to you with your own money so they're not going to lower your cost by a penny. They're not a yours (a profit) until the stock rises by that amount. IOW, you get $1.40 dividend but the stock that you bot via exercise of your Jan 25c is now reduced by $1.40 and selling...