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"Erin Burnett in Wonderland"

The stock price hitting the strike price has nothing to do with anything :) Most of the time, it will happen at expiration. Reasons for early assignment include: 1) Certain dividend situations 2) Option is ITM and trades below parity (parity is the intrinsic value which is the stock...

And to add insult to injury, sme people just love being run in circles :)

>> Am I reading that right? << NO. The margin would be: = $3 + (20% * $80) - $5 = $3 + $16 -$5 less the $3 premium received = $11 Doing vertical spreads "may" reduce the margin (depends on the distance b/t strikes but the trade off is lower potential profit with bonus points for...

I hope to live long enough to see another 2 years like 2008 and 2009. 2010 is back to business as usual, scrounging to make enough to pay the bills (and not tap into the nest egg), As someone posted earlier, more patience than ever is needed and the opportunities are less frequent. There's...

Try McMillan's site: http://optionstrategist.com/free/analysis/index.html

Yes, you are missing the point. In the make believe world where there's no carry cost for an optionable American stock, you can guesstimate the premium if you know the delta as well as stock and strike price. On second thought, you didn't miss the point - it is useless. As I mentioned in...

It isn't an edge or a statistical advantage. I could arbitrarily pick any useless canned indicator (RSI, MACD, Stochastic, Commodity Channel Index, whatever) and run it against the universe of optionable stocks for a given time period and cull out the ones that yielded a 100% gain while...

Delusional? Don't know since I never argue with a crazy person :) As for the time to expiration issue, the exact value isn't needed to determine the premium for a specific delta. IOW, given your known delta, pick any volatility that you want and adjust the # of days (iterate) until you get...

Past performance of a finite sample of 28 stocks is no guarantee of future performance. It's no edge. Ever hear of the Super Bowl indicator?

Exclusion of rates is a time dependent fudge factor :)

I don't know if this helps or not but it sounds like you're confusing initial margin with maintenance margin, both of which fall under Reg T.

If I asked you for the stock price, strike price, premium, time remaining until expiration, volatility and carry cost and told you that I could tell you the implied volatility, would you be impressed? Of course not because you understand what the BS formula is and how it is used to derive that...

The close isn't the only reason for exercise. By Sunday night you'll know if you were assigned and you can deal with it in the pre-market Monday, if necessary.

Premiums are so low now because they had a sale and they've run out of all of the good ones!

It's a mental masturbation poster :)

I assume that you mean selling naked calls and this isn't a word game, eg. selling CC's "on an equity index"? It's late 1999 and the QQQQ is in the high 50's. Over the next 5 months it rises to nearly 120. Not straight line but not far from it. It's Mar '09 and over 9 months, the QQQQ...

Yep, it's probably an expiration example at which time, there is no time premium. It's all intrinsic.