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But would one have to hypothetically close a hypothetical position if one's fills were factually fictitious ??? Is is possible that this chain is filled with "Illiteration" (sic)? :)

If going this route (funding a long call with a credit put spread), I'd have looked at selling the 85/80p spread instead of the 90/85p spread. In return for maybe a buck less premium (raising your upside BE by a buck), your short strike would be 5 pts lower and your loss area might be 4 pts...

SPULL CHUKKER optional :)

Don't take it personally. Enjoy the chuckles as well as the pic from the guy who stuck me with the pinball chick's matronly friend :)

What to trade? You can focus on the news of the day and try to ride the reaction - FDA announcements, pre announcements, mergers, catastrophe (hurricane damage to oil rigs, refineries), product recalls, etc.. You can focus on earnings announcements (directional or trade volatility via...

This a thread definitely worth hijacking. Sooo, did you hear about the lady at the pinball machine with the nice tilts ???

Carefully follow the instructions of the 14th poster in this chain. If no 14th poster shows up, consider used car sales.

Any IB users who had a month last year where you had a net interest accrual debit due to indicatibe borrow rate fees? I've been trying to figure out the breakdown but no luck so far. I've tooled around their web site looking for an explanation but haven't had any success. Appreciate anyone...

Do you have anything with green and yellow lines? I'm kinda partial to those colors :)

Like margin, IV is a double edged sword. It hurts long option positions when it decreases. It helps long option positions when it increases. AFAIK, outside of IV expansion due to earnings announcements, IV would be a secondary consideration with option pairs. Large UL price movement would...

Because the losses on stock pairs can be significant whereas the losses on puts and calls are limited to the cost of the option.

The big move up started the morning after they reported 3rd quarter eanings. The down move began right after they annouinced a write off due to an acquisition. Coincidence? :)

Ditto

I agree. The high borrow rate is to take advantage of what the trader will bear. My guess is that both brokers get a piece of the pie.

Here's a generic description of the process. Identify EA stocks with increased overall IV. Check option chains for horizontal skew in front 2 months ( > 15 BPs). If you find a few, check graph in IVolatility to see what historic level is and how much they imploded post EA in the past...

If you're looking for income, consider preferred stocks. http://www.quantumonline.com/

EDIT: You have 6 legs going in and if lucky, 2-3 commissions to close (the other butterfly will expire worthless).

As SomeYoungGuy pointed out, the risk profile is M shaped with max loss at 110, peak profit at 90/130 and breakevens at approximately 80/100 and 120/140. You have 6 legs going in and if lucky, 2-2 commissions to close (the other butterfly will expire worthless). The commissions and...

That's a good plan. When you blow up your account at your new broker, please let us know how IB made you do it. Pssssst! If you wear your aluminum foil hat, it won't happen.