Search results

Sorry, my bad for the typo and the lack of details regarding the 10%. What I meant to say was that regarding your first link, under the former (not current) rule, 10% was the threshold for contract adjustment. Given that dividends don't change the value of the equity position, if the...

I reveived an E-mail from Optionetics offering a free 2 hour Online Trading Workshop whose come on was: Out of curiosity I attended. Ya never know, might learn something new. It was chock 'FULL OF' the usual easy money cliche's such as: "make 5-10g a month" "pay for your child's...

Maximum loss is $4 not $7

How do you spell W-H-I-P-S-A-W and G-A-P?

Dividends don't change the value of an equity position. Under the current rule, 10% is the threshold for adjustment. It doesn't matter what the frequency is.

What happens if you have a bearish position and both stocks move up? Or if bullish and both move down? Or where the one with a long call on moves down and the one with a short call moves down? If you are truly dealing with 2 different stocks then your short option is naked and that means...

With that logic, everyone should enter the World Series of Poker because Jonathan Duhamel won nearly $9 million in 2010 or play Powerball because a Conagra group in Nebraska won $365 million. Just because someone is exceedingly good or exceedingly lucky at something doesn't mean that it works...

Don't hurt yourself waiting 10 years for them to come back (ignoring the ones that are wallpaper now). :)

If you're having success with this is more than likely because you're getting the direction right rather than the IV. You can verify/disprove this by plopping the opening and closing option quotes (and other details) into a pricing model. It's UL as in underlying not UV.

--------------------------------------------------------------- Quote from spindr0: FINRA's explanation for the PDT rule was that sufficient levels of equity are needed to support the risk of day trading. --------------------------------------------------------------- And you want me to...

Think 2007. You got a chunk of change to invest. You want quality advice. You contact a Fool Service Broker. They provide their research. You buy their "quality" equity recommendations, perhaps: AIG BAC BSC C FNM FRE GM JCP LEH LIZ MCO ad nauseum Uh huh, buy and hold always...

How do you know that the options are over (or under) priced? What if the UL is now in a higher (or lower) period of volatility and that's the new norm? Using different stocks introduces market risk, not removes it. If you hedge the options of one stock with those of another, you better be...

FINRA's explanation for the PDT rule was that sufficient levels of equity are needed to support the risk of day trading. I have no problem with that and in return, I appreciate the 4:1 intraday that it offers.

Most of the time, 10% moves aren't linear. If you employ a reasonable stop, you're apt to be taken out long before 10% is achieved. The big moves are usually achieved in hindsight :) For example, canned indicators can be backtested to find a periodicity that provides spectacular results...

GREEKS: http://www.ivolatility.com/calc/ http://www.sitmo.com/live/OptionVanilla.html MARGIN: http://www.cboe.com/tradtool/mCalc/

High delta ITM calls are a good way to make money if you have the direction right and you get several pts of move. But in the narrow confines of the OP's criteria, they're not going to be the biggest winner. OTM provides leverage. Since it's going to be a binary event, most anything in the...

For a high IV pre announcement biotech, a straddle is a tough way to get anywhere since there's a huge amount of TP lost.

You win big by getting the direction right :)