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If you want to do that roll, use a spread order. You might be able to get a better fill.

Thanks for the heads up. Nice starting point and will be interesting if they're splitting the B/A at all tomorrow.

The best collar is the one you never have. When the market stops going up, close the position. OTOH, if you insist on collaring, figure out the various R/R each position and select the one that you're most comfortable with. Keep in mind that a collar is equiv to a vertical so you collar at...

I remember reading something about close to expiration, theta can reverse itself for ITM options. It has to do with the carry cost versus the volatility.

I've been watching AAPL, looking for some pre-earnings combo possibility for playing post EA contraction. I'm a bit surprised that this close to earnings, its IV hasn't expanded much. Still watching and waiting. A coupla behemoths worth looking at in the next 2 weeks are BIDU, GOOG and...

A covered call spread is the combination of a covered call and a bullish call spread. IOW, for every 100 shares you own you buy a lower strike call and sell 2 higher strike calls. It should be done when mildly bullish and for even money or better. To the upside you make 2 pts for evey pt...

If your game plan is OK with owning more shares of DRYS, consider the possibility of rolling your Oct 7 puts down and out to the Nov 6's. That will have a potential net gain of 35 cts if they expire versus buying add'l shares at $5.65 And depending on your current share cost basis, you might...

>> If you don't have the capital, you will get flagged as a pattern daytrader (no more than 3 buy/sells in a day over a rolling 5 business day period, the 4th gets you flagged) so you're trades have to be very selective and worth the effort. Or you will be swing trading positions held...

Good analogy but I'd go with trading options is like skiing in a mogul field on a black diamond slope, occasionally in white out conditions :)

Size doesn't matter :)

IMO, $20 for an exercise is pretty steep. Fees are negotiable if you trade high volume. I don't know about all firms but IB offers both bundled and unbundled fee structures. As per two previous replies, IB charges nothing for assignment/exercise. That's good. They also charge...

Options are for whatever you can achieve with them. Not only do I regularly "pay a mortgage to my broker" but in June and July I gave him just over $1,000 per month in short interest. It's like rent or salaries or other overhead. It's just the cost of doing business. But sadly, no lunch...

In general terms, you're right. But a lot of it has to do with what kind of day trading you're doing. My day/swing trading of stocks yields a mere pittance in return in cents yield per 100 shares traded. However, when you do large volume, it's a good return. Toss in a large B/A spread, time...

I have a problem with a sales pitch from a fee based mentoring group that says: - BWB is one of the only strategies that I know of that can actually make a nice profit and can lock in the profit wth a little adjustment and can still make much more return (THE ONLY ONE??) - unique strategy...

I can't answer the specifics of your question because there are different types of BWBs (see John Green's previous reply in another chain). But it's not rocket science on locking in profits via adjustments. If you have a multi-legged position that is bullish and it gets ahead, you can easily...

You have several legs in a position. The underlying moves. perhaps IV changes and time passes. Some of the options are worth more. Some are worth less. Closing the position locks in a profit. Adjusting a position can mean adding or subtracting some options to lock in a gain on a...

I would think that a market maker spends more time in the middle b/t an option buyer an option seller (via conversions and reversals, etc.) and the winning an losing is more applicable to the other two parties.

At this point I figured out that the ITM 2 put position has a bearish bias. That leads me to another question. Suppose I start out delta neutral with long stock at 70 and long Oct 70 puts. Suppose after a series of gamma scalps, XYZ is now 66, the Oct 70 puts have a delta of .72 and the Oct...

Thanks for posting that TommyLove. I'll post my ?'s when I catch up and get some time.

>> Here's the rub, the real beauty of such a strategy... initiate a call combo and a put combo... if the stock at expiry fall anywhere between the breakeven point for the put and call combos, you're o.k. You still have the potential of a major win if the price of the stock is at the short...