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For the noobs, set up combo orders for the pair of verticals as well as the pair of strangles. Sometimes you can get a better fill than the natural via one than the other (vertical vs. strangle) when someone offers a little more for a combo.

Legging in simply means trying to get a better fill by executing individual components of the position one or more at a time. For example, with the IC, you're selling an OTM put and call spreads. If the market is moving up, the put spread will decline in value as the call spread increases...

Therein lies the rub. Trend indicators work well in trending markets not choppy markets. Oscillators don't do well in trending markets. At times, shorter periods work better. At other times, longer. Use shorter, have more whipsaws. Use longer, have more lag. Backtest and optimize for...

My somewhat educated guess is that the newsletter guy's 100% success came mainly from margined capital appreciation of the underlying in a superb bull stretch. The premium was gravy. Late '07 and '08 was a time for covered puts, if into covering. In the market, being lucky is better than...

Not to detract from the guy's performance but the past 8 months has been very kind to any bullish strategy, particularly on margin. I'd be curious to see what he did in the 2nd half of '07 and all of '08 when the SHIFT was hitting the fan.

Anything is possible but it's very unlikely to be able double an account with CC's in several months. If you did that, you should be very proud of your accomplishment.

1) There is no magic cookie cutter one size fits all answer in trading. If the underlying is diddling around, your options are well OTM and your premium is decaying, why would you make a hasty exit? I'm assuming that your $300 to $400 of remaining premium is from a small position rather than...

For a change, I'm rather surprised by ET. The bulk of the advice given to you has been on the money. I retired young and have traded for 10+ years in order to augment various income streams in order to pay the bills. I never made a lot but achieved my goal of not tapping into my nest egg...

If you put your aluminum foil helmet on, no one will be able to trace you when you make your calls!

I really like those Ego waffles! :)

What you inferred from my post reminds me of analyzing poetry in an English class. It doesn't matter what you say. It only matters if it's in agreement with the teacher's take on it. :D And truth be told, I do have a problem with anyone who talks the talk but can't walk the walk.

Your short strike should be at a price that you're willing to buy the stock at (give or take the amount of premium received). The particular strategy (naked, vertical, etc.) depends on how much risk you want to accept.

And we should care why? about your opinion of us? LOL. Another good chuckle.

LOL. That's the chuckle of the day!

Not only will you get used to it but if you trade long enough, you won't react like a deer in the headlights when the sh*t hits the fan. When that happens, you've made psychological progress.

You should be cautious every day. But in perspectiive, a 2% drawdown is 2% regardless of the size of the position. Trading involves losses. Every position doesn't win. But if you're making good money, like I said, 2% is 2%. As your confidence grows and the profits accrue, the numbers get...

I think that the beauty of it all is that Faber receives his salary whether he's right or wrong. It's the clowns that follow his opinions that pay the price :)

I agree that high IV is a reaction to the event. I was thinking in terms of pending news. So perhaps a better answer on my part would have been that IV is both and is really a function of demand. If no one is buying and selling, it drops. I do not agree that "extremely LOW implied...

The relative amount of time premium is a reflection of implied volatility. Implied volatility is a reflection of an expectation of a move but it is not a predictor of direction.

It's the same loss either way.