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If you're comfortable with the P&L of the position then it's a decent move. If DRYS moves up to 7 in a coupla months, consider rolling your diagonal up and out, booking profits and reducing the risk of a down move (or selling off some profitable shares).

Are you sure that's the requirement for stock loans? If memory serves me correctly, and it often doesn't, hypothecation was(is?) 140% of the debit balance with the remainder of securities being held in safekeeping. But that's for collateralizing a margin loan... as opposed to many/most...

The usual rule of thumb is that if it looks too good to be true, it usually is. But I can't figure this one. Early assignment on a short call is a risk but not likely on this one since if no sharp upward movement and two large dividends, the price is going to drop below the short call's...

Great idea! Use high IV stocks so you get more bang for the buck. You could become known as the short putz king!

Well, yes and no. When DRYS spikes will determine the profit. Loose estimation: If it spikes to 7 soon, the Sep call will have significant time premium remaining and that will cut the gain to maybe 60-70 cts, give or take. If 7 at Sep expiration, gain might be a bit larger than $1 - eg...

In order for you to short the stock, your broker must find shares to borrow. Those shares may come from its other clients or from another broker. If at some point someone who is long the shares, has lent shares and wants to close his position, the broker (yours or the one your broker...

Maybe if you buy a put it will go up ?

Google "theta formula" and you'll get the dirty details :)

You can do 5 (margin per put is $2,000)

That works best when you borrow a lot of money to do that !!!

Make sure the fill time is an hour later not the report time. Tho prolly not relevant to today, in '87 I had some BSC covered calls that expired on Fri 10/16 maybe 50-75 cts in the money. That means that they should have been exercised (I sell the stock at the strike price of 17-1/2)...

Long-term investors don't waste their time speculating on the intraday movements of companies that might not even exist in five years, like Freddie Mac (NYSE: FRE) and Fannie Mae (NYSE: FNM). These failed financials are hemorrhaging money at an astonishing rate. Even if they manage to survive...

"Long-term investors concentrate on companies with strong and sustainable economic moats that are likely to be bigger and better in five years. That's the strategy famously employed by Warren Buffett, and I'd say it's worked pretty well for him so far" Now that's some winning logic! Only...

I think it has something to do with the equivalence of naked puts and covered calls. :D

Instead of this round and round we go nonsense, the really simple answer is that you can download your trades into a spreadsheet, write a few formulas and determine in a blink if one broker's commission schedule would be more beneficial to you than another.

'87 was totally different. Our market was down 30% the week before the crash. It couldn't handle the imbalance of sell orders. The VIX skyrocketed to something like 150. B/A spreads were humongous. The sky WAS falling, worldwide.

Sorry to be the bearer of bad news but amateurs and noobs cannot compute equivalence.

DITTO !! Market days like today keep me away from ET. (that's a good thing)

In for a penny, in for a pounding?