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I had the same thought about being away on vacation without internet access. That gig is for investors :)

You've sort of answered your own question. It's a risk vs reward comparison. With an equal dollar investment: - ITM call will give you profits on small moves and manageable losses on no move or down. - OTM gives you leverage so a large move can give you a much, much larger gain but...

This chain got a bit jumbled. Substituting a call LEAP for the stock and the put would free up cash but it would not be an equivalent position. To do that, it would have to be a Mar 96 call.

It's a great idea if the SPY goes up a lot. It s*cks if it craters.

There are two answers to that question. The first one is that if you have to ask that question here then you shouldn't be trading options yet. The second one is geared to helping you learn something resembling the answer. :) You need to provide a time frame for your up move. Then you can...

It's possible to flip a coin 12 times and have heads come up 12 times in a row but would you expect it to happen very often? For reality based stats, back test the strategy on actual data. How would an SPX (or other) position done in 07 and 08? 12 straight winners making you 5-10% a month?

If your call value had gone to zero for a total loss, you'd would be telling us how that stop loss saved you a bundle :) As MTE said, there is no rule of thumb. With some trades, you're going to make perfect decisions. With others, you're going to screw them up so bad that you're going to...

Tell that to Caesar! :)

A lot of brokers are graduates from used car sales :) You might want to check the context of the statement from Stocks and Commodities Magazine.

Would it be legal if you wore a burka to cover your nekkidness? :)

Earning an ROI of 5-10% month from one position is a reasonable expectation. Expecting that you readily earn that for 12 consecutive months without a draw down is a big expectation. Envisioning that your account will grow 5% a month for an extended period of time (say a year) is an...

Yep, that what ROI is and it's only useful for comparing different investments as well as results. It's a metric for a single investment. Don't confuse annualized return with annual return.

If the stock has risen above the collar's call strike and you want to keep it, I don't think it's a good idea to cover the calls for other than a modest debit (no problem with a credit). Otherwise, you end up taking realized losses and carrying paper gains and IMHO, that's not a good habit...

If I traded for 1/10 of one per cent of what Elite Traders make, I'd bail out the US government :) Seriously, I'd suggest that you learn not only about the subject at hand but about money management as well. Trade small until you find out what you can achieve and then expand your size...

>> The dividing line between a retail customer and a non-priority high-frequency customer is now 390 orders per day, or one order a minute. Anyone doing 390 orders per day or less on average during a calendar month is considered a retail customer and is allowed to step in front of a market maker...

Now if Madoff had taken the advanced Ponzi scheme web seminar, he might have painted his tape better :)

You can't "expect" anything. If I can do 30%, will you be able to do that much? If I lose 10%, does that mean that you will? There's no way to know how good (or bad) you will be until you do it.

I don't think that it makes much of a difference. If the positions are syntheticlly equivalent, the results will be pretty much the same other than: a) A realized option loss versus a paper loss (equity) if the vertical loses, or b) With a BEEEG drop below the lower strike, you're going...

If you're and Elite Investor, since chit happens, do the collar. If you're an Elite Trader, get out of Dodge daily :)

As others have mentioned, selling the Oct 96 puts would create a calendar spread. I don't think it would be a good idea since with October expiration next week, you wouldn't get much time premium unless the drop was close to the strike and SOON. In addition, your SPY position would no...