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Black Monday in '87 taught me an invaluable lesson regarding margin and money management... though I would have liked a lower tuition.

Buying protective puts can be expensive and for some, it's not their preferred poison.

Multiple symbols means there's been an option adjustment due to a corporate action. Go to the CBOE.com web site and do a search on RTP. Open the most recent one(s) and you'll find the terms of the adjustment.

I think it's called the WUBBLE-U :) You can also achieve it with ratioed calendar straddles, double diagonals, etc. Generally, it involves any inverted V position involving at least 3 strikes and more long legs than short.

I would not be impressed by their calls, explanations, etc. They fouled up. It's their responsibility to execute trades properly and clean up the mess when they don't. I don't like the paperwork is too extensive excuse for not settling their mistake properly (eg. a cash credit posted to...

It's clear??? I was certain that it was white. Geez, I'm sorry. :)

Your comments are correct. But in the context of this discussion, the nominal amount that puts exceed calls in time premium isn't significant because the objective is hedging one's portfolio. Regarding limiting the upside, with a collar, that's what you give up in return for a low/no cost...

To be fair, as piezoe noted from the OP's conflicting posts, there is some question as to whether the he was long or short. Sometimes it's hard to tell the facts from the typoese :)

But did you know that there are fabulous opportunities in the white coffee trade? :)

If I was an investor rather than a trader, I'd look at collaring my portfolio... Sell some OTM index calls to fund the purchase of some OTM puts. Use other people's money to achieve low cost/free catastrophic protection. And if wrong, you have a nice gain on your portfolio to offset lower...

If it's true that it's self evident than why state it incorrectly? Who suggested exercising the long leg as a solution to a calendar that's ITM? Try doing the math of what happens when you buy stock and it then drops significantly... unless, of course, you believe that "you will most...

You mislead the respondents on this thread by stating that you can roll the calendar forward by selling a call in the next month forward. It takes more than that to roll it. Buying stock to cover short calls can be a Pyrrhic victory... you will keep the premiums but you may lose a lot more on...

Kool aid, Schmool Aid... The moral of the story is: Spit! Don't swallow. :)

Those deep ITM options with Holland Tunnel wide spreads are a good business to be in :)

Have you considered a Columbian (coffee) cartel? :)

Options are not adjusted for regular dividends - they are priced into the options. But what difference does it make? And why all the gyrations to determine a dividend adjusted implied volatility? If you're going to delta hedge, you're interested in the delta of the options that you are...

1) Determine wihich option quotes you are going to use for your calculations. Iterate the respective IV's from them. Average the calculated values. OR 2) Look at the pretty graphs of historical IV at IVolatility.com

Vis a vis an unknown future IV, how would a synthetic long be better than the natural long? If you expect a "big" move, do you expect that IV will significantly alter the profit from that move? (assuming that you pick the correct direction) And if you predict and get that "big" move, why...

See dagnyt's reply on the previous page. IMO, LEAPS are not a good idea for diagonals (a covered call with put protection). They involve too much time premium and are sensitive to change in IV - which can be good or bad. Use mid term puts (3-5 months) if you're going that route. They have a...

Perhaps he should drink the Kool Aid :)