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I hope you were able to split the bids and didn't exit on a market valuation.

AFAIK... What makes a stock go up in price? More buying than selling. The existence (and terms) of employee options has no effect on the stock's price. Does exercise of employee options make the price go up? No, because the source is company stock. If anything, I would say that...

Hey Don. LTNS. You lost me on this one. I don't see how you can eliminate the 45 put in both positions since there's no 45 put in the CC. Or did I miss something? If anything, I think that you demonstrated that in this case, due to market forces, the NP offers a bit more premium than...

ROI analysis is fairly useless for totally different strategies. And the spread risk is obviously much less since you can't lose more than the strike diff less premium received.

The gubbermint is desperate for add'l revenues. OTOH, some know that they can't wreak havoc with the system. Don't be surprised if they implement a smaller transaction tax one one or more investment vehicles.

How have the Jan $5 calls gone crazy? High volume recently or just a lot more offered at 5 cts? :) I don't know much about Employee Stock Options so maybe I have more questions than answers. Aren't ESO's usually non-transferable? If so, then they won't be traded and will only come into...

Yep, you can buy more OTM options than ITM and that gives you more leverage. It also gives you a higher probability of losing a larger per cent of your investment. How do you spell T-R-A-D-E-O-F-F ?

People should utilitize strategies that they understand, can implement and manage, and whose risk/reward profile they're comfortable with.

If you do a mix of bullish and bearish spreads, what happens if the market tanks? The bearish spreads could possibly be 100% profitable and you'd only have problems with the bullish spreads. If the market range traded, you might do decently on both sides. Take mid 2007 when the market...

Hate to be a party pooper :) but do you think it might be an idea to believe that the stock recommendation that you take from repliers is going to range trade or appreciate a bit?

I'll defer to you on futures since I have limited experience with them. I do believe that if one can, one is far better off scalping intraday moves and being in the luxurious safety of cash overnight. However, with options, that's usually not the case since I think that the majority chase time...

The best way to avoid loss from a serious down turn is to get out of the way. In the OP's case, he's talking about overnight crash so protection must be in place beforehand. While a CC/NP diminishes the risk of leverage, IMO, a smaller "beating" isn't a good answer for avoiding a beating...

While I doubt that you'll be able to sustain it, if you are achieving 10% returns monthly, you should not think twice about spending 1-2% on OTM puts to protect your cities.

That makes no sense at all. A covered call is equivalent to a naked put. Doing naked puts instead of calendars doesn't reduce risk. It increases it. If you wanna go all crazy on this, at least do naked calls :)

Calendars have risk in both directions but since they don't close the markets on good news so they can melt up, the downside is your concern. Insurance costs money. Better coverage costs even more. The question is, how much do you need and are you willing to pay for it, cutting into your...

Stating the obvious, if you are concerned about hedging short gamma then maybe the answer is some long gamma? Protective insurance costs money. The better the coverage you desire, the more it costs. The more you pay, the lower your return. It's the eternal trade off with options. One...

Compare these two: Buy 1/11 400c, sell Dec 580c Buy Jun 550c, sell Dec 580c ----- Compare these two: Buy 1/11 400c, sell Dec 590c Buy Jun 550c, sell Dec 590c ----- Compare these two: Buy 1/11 400c, sell Dec 600c Buy Jun 550c, sell Dec 600c ----- Or use the Mar instead...

Plus it also improves vending machine sales during coffee breaks at work

No, I can't. I said diagonals not horizontals. As an example, since IV's and intraday prices vary across the months and strikes, use a hypothetical IV of .25 to fairly price the Mar, Jun, Jan/11 and Jan/12 calls at 400, and 550 at an underlying price of 580. Now drop the price of the...