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Deep ITM can be illiquid. Other drawbacks can be wide spread and trading under parity.

Chances are, you have a better chance of making big bucks by creating the a marketable program than trading. Think Cabbage Patch Doll, Dungeon & Dragons, Hula Hoop, whatever. If it catches their fancy, you're golden.

Why do people buy lottery tickets or fall for Ponzi schemes? Why do we have so many lawyers? Why is the sky blue :) ??? ...bait and switch, bridges for sale, swampland in Florida, three card Monte, and a plethora of other scams and frauds. A lotta people are stupid and get taken A lotta...

You win some, you lose some and the rest are rained out. Get used to it. Trading involves accepting the fact that there are a fair number of losers - sometimes even more than 1/2. There's no such thing as perfection. The trick is to find a way to manage the losers (higher $$ gain/loss...

That makes sense... but why is it allowed in equity markets but not options? IOW, why the regulation for options only?

Yeh, the TEST feature is still in the Downloader. They used to have a DOS stand alone utility called the Metastock Utility (MSU) which did TEST, RANK, ALPHABETIZE, CONVERT, etc. I don't know if they provide a Windows version now.

Yes, it was a good call, ummmm put call :) If at the current price at 9:30 AM, the puts should anywhere from 25-35 cents, depending on how much IV collapses. If CSCO rallies in the pre-market (say 20.50 or higher) and IV collapses to pre EA levels, you won't see anywhere near that gain at...

In about 20 years, China will be considering whether to grant the United States most favoured nation status :)

I'll bet you an online nickel that if CSCO hits 21, you'll be lucky to have a break even.

I had two exceptional years in '08 and '09 pairs trading the spread b/t illiquid correlated securities. It took no more than simple arithmetic in some large spreadsheets to crunch the numbers and spit out the best couplings. The early 1/2 of 2010 was adequate and very marginal since...

Everyone at the buffet table has their own limit on how much they can eat :) For my own taste, I'd prefer not to own shares during EA but given a collar situation, I'd sooner overwrite calls further out of the money (or sell some add'l bearish call spreads on top of the CC) and buy a put...

Delisting does not preempt the ability to make closing transactions.

That's a good way to hedge against an EA clobbering and yet commit to a lower loss of stock should there be a stunning upside move (assignment) - as long as he can tolerate up to a 2 pt+ loss on long shares should CSCO drop. The weekly's IV will collapse and with 2 days remaining, CSCO will...

Size of move? Time needed for the move? Amount willing to lose if wrong?

Sorry, my bad! :eek: I saw the year not the date in my quick look. At lease I got the year right. :) That makes the weekliy idea less dicey it won't be expiring the same day.

The outright purchae of protective puts is the simplest and most effective way to protect your stock but it costs the most. The collar is the cheapest way to lock in a low loss range (loss on stock down to strike plus cost of collar, if any) but because it involves selling a call, you will...

How does the collar slant the R/R so much? It would seem to me that if you collar, then the only issue is if you have an edge in selection. If so, you make. If not, you lose. In both cases, limited, but they edge is the difference. Legging in is good for those who can do it, bad for...

That reminds me when I've transferred a MM account balance on the first of the month and they then post a few cents of interest after that (for the day or two it takes for the ACH to go through). With a penalty for below monthly minimum balance, they then they bill me $X a month for 6-12...

Portfolio analysis is also above my pay grade. But be that as it may, I think performance measurements like the Calmar Ratio are a bit esoteric and not necessarily that relevant. You can raise the ratio by lowering your maximum drawdown but that's just a statistic - you can still lose money...