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Everyone knows that shorting the market entails unlimited risk !!! :eek: :D

Thanks... been there, doing that. I have an idle $500 account at Scottrade so that I can get free streaming real time Dow Jones News (used to pay $39.95 a month at Ameritrade). Might have to do the same at OX.

If this reply was for me, my question was about what the components of the position were not what happens later. If not for me, I'll wait for another reply. (sitting here drumming fingers) :)

And sometimes, you change your outlook :)

If you have a 5k account, assignment may give you a problem if you're below 50% SMA (equity margin is 50%) Premium decay is fastest as expiration approaches. You can get approx 1/2 the premium for a 1 week write that you can get from a 1 month write, all other things being equal. But the...

I must be fried from a really hectc day cuz I'm missing something. This is a deep ITM write against long stock placed as a net buy/wite order (what you call a spread) ? The $2.60 is the net cost of the CC?

I have access to Scotrade but they don't have IV in the chains (as OX does/did), at least I don't see it. CBOE has chains but no IV. Got IV?

Look at several strikes near the money. If they're all off then your volatility input is off. If only the Sep 5 is off then something might be going on. Obvious to most but needs mention: Make sure quotes are live not last or close, options are standard (not adjusted), compare B to B or A...

Did you find a replacement that offered similar features?

I don't know current policy since I haven't opened a new account in a long time but 10-15+ years ago, many brokers began charging a fee of $50 or more to ACAD a stock position (or account) out.

It's a function of risk verus reward and timing and selection. In terms of option buying: OTM = lower delta, higher levearage, higher probability of loss ATM = delta of 50, highest time premium ITM = higher delta, lower levearage. lower probability of loss And then there's the...

-------------------------------------------------------------- Quote from spindr0: Why would one do this in separate accounts in the first place? -------------------------------------------------------------- I think that's a winning answer! :)

Why would one do this in separate accounts in the first place?

Whatsa matter wid you? You have something against singing along at the Munchkin Show?

I'll second akivak's statement about the IB workstation on May 6th. I was trading stock throughout day and I had no problem with quotes, order handling, transaction speed or execution confirmation. I would love days like that to become a regular event. :D

It's kinda like which came first, the chicken or the egg? It's neither. It's the one smoking the cigarette. :)

The short answer is that puts are exercised to sell stock. Some examples: 1) I own put protected stock and the options are near worthless (ATM at exp) or trading at parity. Two commission event to close each leg but no cost to exercise at my broker. 2) Deep ITM vertical where I was...

I surmised that the June ex-div might be safe since it's likely that at current price there would be time premium remaining on the call side (not much of a profit potential) but just before the Sep ex-div, it would trade near parity hence likely exercise. But would that matter if NLY was below...