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Why would you ever allow yourself to be in this position? Just buy back your short options prior to expiration. You are allowed to take losses on some trades. Mark

You know the correct answer to the question! Mark

That's far more useful than filling at the ends. Thanks Mark

I'm looking for a paper-trading account that provides reasonably priced fills - where you don't have to pay offer or sell bid. Need it for teaching purposes. Any suggestions? Thank you Mark

Greeks measure risk. That's all they do. Use them to ESTIMATE P/L if you want to do so, but you are ignoring the fact that options trade based on supply and demand, and the final closing price of the day is meaningless on the accuracy scale that you seek. Mark

It's fine to ask noob questions. However, the fact that you are asking whether to exercise your long put option is proof that you are not anywhere near ready to trade - even one-lots. In general, closing prior to expiry is the best idea. Yes, you have to begin somewhere, and opening a...

Unless you state a specific type of trade, the question is meaningless. A trade for a scalp can never have a holding period similar to that of an iron condor. Mark

Be careful. When there is a fast market, or any time the market makers widen their bid ask spreads, the bid price drops by a significant amount. That could trigger your sale. There is no good method for using stop loss orders when trading options. Consider spreads: They have a built...

Yes, they do have juicy credits. But those juicy potential profits come with commensurate risk. The real problem is that they guy recommending the trades tells people that there is essentially no chance of losing money. That's the problem. Mark (MDW)

1) Selling the puts is a good idea - but only when you are wiling to accept the premium as your maximum profit. 2) You cannot sell calls - because you do not own shares, and being short puts does not count. Most brokers do not allow clients to sell naked calls. If you are going to be...

That is not true. Your perspective is off. For example, if I elect to write a covered call, I am stating that I am willing to sell my stock at the strike price. Plus, I collect a premium. When the stock moves much higher, I lose NOTHING. I was going to ell my stock anyway, so I lost...

You are right. But schmega? You overlook the importance of schmega. Mark

Wrong question. What you want to know is how did he/she manage risk. That's the secret. Strategies are seasonal. Some work exceptionally well, then fail. But solid risk management works forever. Mark the Rookie's Guide to Options

That's absurd. Where would I get names? Do you think people write to me tell me how much they make? I know you can make money using options. But it is not only using 'options' that makes money. It's your attitude. Its your ability to manage risk. This is the single most important...

You do not have to be a gambler with a huge appetite for leverage. Do you avoid driving a car because a segment of the driving population tends to drive while intoxicated? These drivers place you at risk. You cannot avoid them. But when using options, you are in your own little world...

You have some very bad misconceptions. 1) A broker doesn't give you anything 2) The person with whom you trade - the person who takes the other side of the spread - that's the person who fills your order. that's eh person who 'gives' you a price. 3) The market maker is thee to get...

Hey Spin, No flak. The Greeks are used to measure risk. If a trader doesn't want to measure risk, that's his/her business. Mark

What you really get to take advantage of is the huge negative gamma and the possibility of losing your shirt. Mark