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Gold stocks have been moving around lately, sometimes 1-2 pts intraday.

On paper, that's good advice. But in reality, it's not likely to happen. Compounding for 30-40 years is great but those that attempt to achieve it are generally long term mostly buy and hold investors who participate in the bear markets as well. And then along comes a verrry "special" year...

How do you make a million dollars in the market? Start with two million! :)

I too have never done it but I can't imagine why you can exercise early but would have to wait until after 4 PM on exp. Friday to indicate that they should not exercise (With IB, I believe that the LAPSE [Don't Exercise] feature is intraday for expiration Friday)

Don't drink the Kool Aid (aka Flavor Aid) :)

I doubt that John Brasher is an investor who believes in the company and is in it for the long haul :)

How does the little guy make real money trading? He becomes a big guy! :) If I'm capable of a 10% return on my money, to make a $1,000, I need $10,000. But if I want to make $10,000 at that return rate, I need $100,000. That's life. You need more to make more.

You're entitled to prefer the phone. But how far before 4 PM must you call? With electronic decisions, you can wait until minutes before 4 PM and possibly save some premium or avoid pin risk and wasted commissions.

In terms of the overall position, a very large move up or down is the ideal result, letting the extra wings come into play. In terms of the near month, the ideal expiration is a pin at expiration because that means you collect almost the full value of the front month butterfly.

Yep, if the net result is a margin requirement, they will unload everything to satisfy it. An angry phone call is not going to be your biggest problem. If your account equity is less than the Reg T initial margin requirement, your account will be restricted. That means that you will not be...

My previous response was geared toward the proposal that Maverick's "ideal trade" was relatively risk free and would "get money if the underlying is flat, moves up or moves down." While that's true if it moves up or down the ideal amount or does a 1/2 gainer on the 12th day of odd months...

ET Traders are like condoms. They come in 3 sizes: Small, medium and liars :)

I'm not going to post a reply mentioning that by lowering your risk via a spread you improve your risk/reward scenario :)

The risk is that you believe that these are risk free positions. Yep, if the stock goes nowhere, the near month credit spread earns premium as the stock sits still. Unfortunately, the overall position loses money if it does that. But who knows? A lotta people get lucky in that their near...

All of this would be a lot easier if you just dropped the position into a modeling program. Pick whatever later date and IV you want and click ENTER. A graph of the position will give you a much more accurate idea of potential results with a fraction of the mental gymnastics.

Every option position is risky if there's a possibility of losing money. As for spreads being risky because "you must have a feeling about market direction (either going up, going down or staying within a range)," apart from the quantitative risk, is that any different than a covered call...

It must have been one of those evening/weekend LIVE TRADES that you monitor :)

I beg to differ. It's gibberish not gebberish :D

Interactive Brokers offers a "button" that enables you to exercise - no phone call or E-mail needed. I don't know if other trading platforms offer the same...

Technically, "buy to close" refers to closing a short option and "buy to cover" refers to closing a short equity position. However, if we were talking about a stock position and you said either one, I'd know what you were talking about, despite the mild infringement of politically correct lingo...