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Check out www.dorseywright.com I've used it for years and have always liked it for my longer-term stuff.

You're over-simplifying the probabilities. It's not a 54% chance of max loss (nor ~45% chance of max gain). For a liquid investment like SPY, the options are fairly priced - neither buying or selling options has no inherent edge.

I would concur with triggering off the underlying's price, which may have to be adjusted daily (or more) for volatility changes. As for execution, thinkorswim, for example, has a nice feature which allows you to execute off the bid/ask (or mid) of the option/spread with a plus/minus setting...

First, you're in the wrong forum - should be in retail broker or options section (Don't repost; Mod may move thread for you). Second, thinkorswim (tos) or interactivebrokers (IB) may serve you well (you didn't specify if you were US-based?). tos has slightly higher commish than IB, but tos...

Good point.. I guess I should have qualified my statements further; Most first-time options traders I've run across, here or through a local trading group I've been involved in, get enamored with the leverage aspect of options, load-up, and blow-out a position or two (or an acoount or...

I didn't see the specific show, but from other episodes I've seen I suspect she knew earnings were coming up, her losses were limited, and she made a bet on which way things would fall out. If so, that's not a disastrous trade, just one (of many if you trade) that didn't work. BTW: the...

maybe.. http://www.dickreuter.com/res1.php

I feel your pain, SM. Give some thought about whether you're feeling a healthy passion for trading, for learning something new, and realizing new talents; Or are you obsessing over how you'll have no more day job, no boss, and work in your jammies. The former is healthy, normal, and...

We had the same explosion in stripmalls here in The Woodlands, TX USA (just N of Houston). I'd guess the ones built in '05-06 are maybe 40% leased. There is one larger '08 property that stands 0% leased! I heard a retail sales expert say we had 20 sq ft. of retail space for every man, woman...

www.portfolio123.com

It was TD Ameritrade, and it's done.

the Saturn deal?

It does help to keep your sense of humor in this business. Good luck, though.

Natural gas spreads - short one month and long the other (or long/short). The letters are the month codes for the futures contracts. Read thru the thread and it'll start making more sense (the "what they are part", not necessarily the "how to trade them part" - still figuring that out myself).

JohnGreen makes a very good suggestion. Since I don't do "naked" I missed legging into the spread. And when I spoke of hedging before I neglected to state the fact I'm typically using individually hedged position to start with. I was discussing hedging on a portfolio-wide basis. And on the...

My understanding of market makers is they're not after the nickel though. And I'd assume they are hedged and not carrying large overnight risk for a nickel. But I don't see the similarity of what you're doing to a market maker? Also, you are correct that nickel options aren't a certain...

Sorry, all out after today's pop.:)

Yes, your risk is not the one call position. My post was as much to point out the real risks to newbies reading along. As for sleeping uncomfortably, I have spent a great deal of time going over hedging techniques/scenarios/plans to help my slumber. I always come back to the basic conclusion...

It sounds like you have a well thought out system, but your original question and statements such as these likely prompted the advice you're getting. There are folks a lot smarter than me here, but to clarify my earlier post (and if newbies are trolling). Your specific question was regarding...

As you surmised a large majority of the time you'll pickup that last nickel. Then one day you won't and lose 20, 30, 50 or more nickels in the process. It all depends if you want to pickup your nickel when you hear the whistle, see the headlight, or feel the ground shake.