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There's nothing optimal to calculate for straight leverage. As sjfan suggested, if you buy the ATM call and sell the ATM put, your net delta will be 1 and if you want 5X upside leverage, do it 5 times. If your inclination is to the downside, reverse it: buy the ATM put and sell the ATM call...

OK, lodging stock is what we call margin. gotcha. MushinSeeker gave you the answer but perhaps it wasn't clear. If you want to do a synthetic calendar for a credit, you're going to have to short stock. From a conversion formula, ignoring dividends and carry cost: S + P = C or -S -P...

IB's simulator will ony fill you at the current size available. No more will be available until a new bid (or ask) volume appears. OTOH, they will not fill at other than the actual B/A so splitting is not possible. It's more like playing monopoly than real trading :)

What is lodging stock to trade options? And how is a credit received a limitation? Any synthetic equivalent to one leg of the calendar (combined with the other) would give you an equivalent but it involves more legs and therefore is less efficient (more slippage and comissions).

Denk you berry berry much :)

---------------------------------------------------------------------- Quote from spindr0: Ummm, backspreads aren't exactly positions where the worst case scenario is a small loss (the OP's premise) ----------------------------------------------------------------------- Thank you for...

Free membership at Ivolatility. Then you can look at the pretty colored comparison graphs of IV vs. HV (up tp 1 year): http://www.ivolatility.com/options.j?ticker=ISRG%3ANASDAQ&R=1

You should have usd the stop loss order that's only good between certain hours :)

What's the likelihood they're going to raise the dividend more than a few cents? Or that interest rates would drop steeply in 3 months? Or that a low beta utility's IV would suddenly run up? Those are almost lottery ticket events. My guess is that a utility is the perfect choice to...

Darn! I wish you'd post these picks during the week cuz I can't mortgage the house on Saturday! :)

You might wanna rethink that one...

I dub thee: Captain Obvious!

Once upon a time (before the big war) when men were men... a covered call writer/option buyer get on the phone and often secure Level 3 approval by offering the argument that spread approval would allow you to efficiently roll your positions up or down or out, reducing risk (versus than...

Here's a link to dividendium's explanation of their put protected dividend concept as well as an example: http://www.dividendium.com/blog/index.php/how-can-we-invest-while-avoiding-losses/ Stock: SO Stock Price: $34.59 Annual Dividend Yield: 4.86% Option: SOWH Option Ask: $5.80...

The point of my naked put example (which you grasped) is that the key to the dividenduim.com concept is finding an undervalued put and utilize a strategy to take advantage of it. Whether there's a dividend or not, it all equates to buying OTM calls (equivalence) and hoping for a miracle. You...

I think it's hidden behind door #2 which says RISK :)

"Best" broker is a debatable topic since each one offers different features. I've been with IB for 10 years. Some here have noted problems with them. I've had none. Thier low rates are on a per share/contract basis rather than on a per trade basis. That's imp't to me since I scale in...

Collars lock in a profit range b/t two strikes and are most likely to fit your requirements. They have a capped upside and a protective floor. There are many other possibilities but they have a variety of risk profiles. The beauty of the hedge is in the eyes of the beholder.

I expected FFIV to move over $15 today. Man I'm good !!! Too bad I was short :D :p :)

Time decay Decline in implied volatility