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What's the advantage in doing that? They pay him with his own money (a wash) and now he has more downside risk.

Hmmmm.... Margin violation? Restricted account? Bitch on ET for weeks?

When you're long and the UL goes up several pts, the result is pretty decent. If it goes down several pts, the loss is pretty decent. No rocket science here.

See Apriil of 2000. Let me know if I get an A from your teacher

Are you looking for the UL's close on the 3rd Friday? If so, what symbol?

You're really missing the point. The numbers that you "made up" happen to be darn close to what an option program would spit out if one used your inputs. So it's not a question of the accuracy of your numbers. In your example, all of the div is priced into the puts since they're ITM. But...

Thanks, that makes perfect sense but it doesn't reconcile with my sometimes failing memory :) So I popped your numbers into my ancient pricing program and it verified your numbers to the penny (hmmmm, still scratching my head...) However, when I used the IV that your numbers generated but...

When I've looked at short term equity options just before ex-div, the div was somewhat evenly distributed across the put and the call. On ex-div day both adjusted by that amount. So I'm confused because the put decrease was not equal to the dividend. How does this position offset at 100% ?

Order placement that requires BTO/BTC/STO/STC clarifications are usually found at brokers that are time wasters for traders. These clarifications are probably useful for noobs who need multiple layers of verification before having the courage to click TRANSMIT. In a fast market or if price is...

Most of the online banks facilitate bank to bank online transfers once you link accounts. If not set up for it (unusual), you can pull money out via one that does as long as you have the routing number. Usually takes 3 business days but I've experienced less. Regarding wire transfers, you'd...

Check out CSI Data Systems. They've been around for a long time. I don't know if they offer historical intraday. Ask. Worst they can say is no.

For clarification, this was in reference to selling covered calls. Yes, if the UL drops, the call will expire. If the UL drops enough, the only strikes with some premium may be lower strikes that lock in a loss should the UL rally and you're assigned. The original strike may offer only...

:D

Higher beta stocks tend to move around more than the market so their options tend to have higher implied volatility and therefore. higher premiums. The flip side of that higher premium is that they're more likely to move ITM or OTM. The success of your strategy will depend on your ability to...

I replied to osho67's question about selling a naked strangle versus selling a covered call and you disagree with me because it's better to buy a long staddle rather than a long strangle? Ummm, OK... :confused: :eek:

Not missing anything but you may have as many as 6 commissions so you need low commish rate.

You could test this easiuly with historical data. Since that's usually expensivve to come by, you could do some hypotheticals in a spreadsheet. Easier to test a hypothetical prices, more effort to test with actual UL expiration values (stock is known, would have to determine option prices with...

I don't think so because with a collar, you lose on the UL down to the strike. Below that you break even. If you were to do make believe collars where the UL was always at a strike and that strike was your long put leg, the option collar would always be put on for a debit and the same...