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Scottrade is offering a two for the price of one special this month :)

And you think that anyone here has the time or inclination to input values into a pricing model to verify this for you ???

Net cost of the position is $4.51 so you've locked in a loss of one cent (ignoring commissions and possible slippage if you have to exit on a pin). If stock goes to zero you get $4.50 for your put. If stock goes to 100 you give it up at $4.50 (the 4.50 strike covered call). No free...

You can see the performance of each over time by modeling the respective positions. You can also get a "right now" snapshot (no time decay or change in IV) of what will happen if price moved by looking at other strikes. For example, you are comparing the 92p to a 112/108.5p spread. Look at...

A lot of brokers use last trade to paint the tape :)

Though buying a pre EA 200 IV long put 2 days before expiration defies sound option logic, congrats on a good trade. I hope it was real pesos not sim paper.

It's not a strangle or a even covered strangle. It's equivalent to 2 NPs. That means risk down to zero. No one is dogging it. Someone just stated that CC's and NP's have lousy R/R ratios. That's true regardless of what any investor thinks/does.

Understanding the equivalence serves 2 purposes. 1) it makes understanding what the position is much easier 2) it saves on slippage and commissions if executed simultaneously

Don't take it too seriously. At one point or another most of us typo something or say something silly or incoherent. When you get older, you'll do it more often ... and you'll care a whole lot less :)

Do you have a web link for helping with that??? :)

Whenever you see that it's because of an adjustment to the options from a corporate event such as merger, special dividend, spin off etc. In the case of AIG, I think there was a warrant spun off a few months ago. You can get specifics at the CBOE or OCC web sites.

You know that there's a good chance that if it doesn't go down, it might go up? :)

If your outlook has changed, get out of the way. Sell the stock, book the profit. EA plays are for those with conviction or lack of good sense :)

It's likely that 5/21 95p will cost less on the 20th due to proximity to expiration due to 2 days of time decay but there's no guarantee since IV can expand pre EA. FFIV closed at $93.53 today so that means that the 95p has $1.47 of intrinsic. The Fidelity prediction would make sense at...

I'd lean toward ratioing to the upside (OTM calls and/or call spreads) because if AAPL tanks, he's losing on the stock down to strike and possibly a lot more on the naked puts. To the upside, there's a decent stock gain until the short call strike is reached and above that, he gives up profit...

In order to get something you have to give up something. Collaring is the simplest answer. Overwriting or adding bearish call spreads is the next level but comes with an add'l set of complications. And of course, there's always getting out of the way of earnings.

You can buy puts on your individual stocks if you're trying to hedge individual risk. If you fear a market collapse then buy index puts. The problem with buying puts is that most of the time, it's a waste of money. That means that you need to be a lot more right with your stock selection...

Double reverse staddles and strangles are interesting if 2nd month IV is inflated and/or you expect a large move in the UL. take a look at a short Apr/long ATM double straddle. If back month isn't very elevated but there's large skew, long doubles are interesting. In both cases...