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It seems that we have a new applicant for David Copperfield's position as Assistant In Training. Good luck acen1975! :)

The Big Lots store offers puts for 1/2 price. Grab all you can! :) Seriously, you need to look at some risk graphs because cobbling a strategy with random parts isn't going to end up in a good place.

Determine the spread on each leg of 1 butterfly. Add em all up. If the total is anywhere near the fluctuation amount that you've observed, that's the reason.

What's your point? The authors of the first 2 links stated that they like ITM covered calls on dividend paying stocks and by doing that, you can achieve a 12% anuual return. The author in the 3rd link indicated the likelihood of collecting the dividends. Wlell golly gee, everyone who...

C'mon. Be gentle. He's just a poor factory worker! :)

Man I hear ya! I hate it too! Whenever I post something incorrect here, everyone gets all contentious on me! BTW, LO and GRMN go ex div day after tomorrow. LO is $1.00 and GRMN is 75 cts. Please show me how I can profit from the ex-div by Friday PM via writing covered calls.

Unfortunately, there are two indicators called relative strength (at least in the old software packages). The better known one is Welles Wilder's baby (RSI). Comparative Relative Strength is simply dividing the closes of stock A by stock B. If the graph of this is rising, stock A is...

acen1975, explain that to me again when you sober up :)

These are fairly relaible tho it's a good idea to double check with another site if you're going to take a position based on their info: http://online.wsj.com/mdc/public/page/2_3022-dividends.html?mod=mdc_h_usshl#dividendsB...

I would have thought that warm glowiing feeling would have been enough :D

Lots of Prozac!

And one other thing. Stay away from last few days before expiration unless you're near ATM because your deltas will be dropping quickly and will be less effective. Therefore, your stock position can weight more heavily. I have little experience with delta hedging with options. That may be...

nOOb scores the point. The author of the article is wrong. The ITM call will not drop the amount of the dividend. Your 2nd point is for noting that there are no free lunches. If this was feasible, everyone in the world would do it on every dividend paying stock in existence and ignore...

I have no idea what and why MMs do what they do. However, if I had a straddle that gapped a strike, it would be a no brainer to me. Either convert to a strangle or roll the straddle back to ATM. Book profits! Suppose you had a $50 straddle and the stock rose $1. With similar deltas at...

If you work something up, try to observe the process intraday. If you can find something that expands and contracts intraday (like a Bollinger Band) you may have a new toy :)

Do you have an edge or do you hope you have an edge? IV cancels out nothing. Assuming that IV contraction isn't a forward factor, as a long call buyer your issue is time decay. Slower initially. Faster later. If you are buying 3-6 month long calls and you get a 10% move in in 2-5...

Random answer: I won't provide a shred of proof but yes, it's very possible. The beauty of the high correlation is that the respective underlyings will always hedge each other with no involvement with issues like time decay, implied volatility, expiration, etc. So if there are intraday...