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This is an interesting butterfly trade; make of it what you will. Some rich Dude or Dudette put up almost $20,000,000 this week to enter a butterfly debit trade on the SPY. The bet will pay off $250,000,000 if the S&P 500 is at or near 2400 shortly after the election this fall. The trade is a...

Stockoptionstrader, this is silly: do the math. Exercise and you buy the stock for $55. Add the $9.50 you spent for the right to buy it at $55, and that means you have $ 64.50 invested in a stock that's currently selling at a market price of $63.62, making this a losing trade. So if you did that...

You're naked writing on indexes, and you've out-scaled them. Wow, you must be a bazillionaire.

As a grad, I'm biased toward anything from the NYIF. Check out the Series 56 stuff they have available at the CBOE: http://www.cboe.com/learncenter/nyif.aspx Good luck on your test. PS. I'm a big fan of flashcards. Do a Google search on: series 56 flashcards and you'll see a bunch of...

Big Mike. That's not what she said.

This really isn't a proverb on trading, per se, but it's one of my favorite lines about the market and trading in general. As told by Richard Ney in The Wall Street Jungle: Clearly the lunatic economics of this larceny (stock market trading) appeal to the criminal. The story is told that...

Could you point me to where on the video "The old man got blatantly manipulated out of his short by the stock's MM." Thanks.

Your put will give you the 1 to 1 protection you're looking for up until it expires, but minus the time value (the $2 you paid for the ATM put) that will evaporate as the expiration date approaches. In other words, let's say by expiration your $50 stock has moved down to $49. Your put option...

These are (really) oldies but goodies, so they might not be exactly what you're looking for if you're after something more contemporary, but I think everyone in the market should read them once: The Wall Street Jungle and the The Wall Street Gang, both by Richard Ney. The numbers have...

Mucho gracias, 1245.

I have a formula that predicts the day's DJIA result, and would like to find the best vehicle to trade it with. I'm inclined to just use S&P contracts, or the S&P minis, due to their liquidity and fairly close correlation to the Dow, but would be interested in hearing any recommendations...

I love the market. The best part is that I've only figured half of it out.

I applaud your due diligence, and the application of your Excel skills. I hope you keep plugging away at it until you are comfortable to trade it for real. You mention you've paper traded it for a while. What are your results?

bone, good point, but I was trying to give the OP something a little simpler and more conservative to tax his intellect with and build his experience upon. It beats encouraging a novice to blow out his account trading the S&P. I wouldn't generally advocate using a simple covered put or call...

sneakoner, I could answer your question but I am a bit of an outlier* for various reasons, so it wouldn't tell you much that would be of benefit to you. * Malcolm Gladwell's book, Outliers, is a great read!

Bone, buy GE at $16.12, sell Oct 16@ $.83. Divide .71 by 16.12. I come up with 4.4%. Downside protection to $15.29.

I've been at this for 37 years and I still lose money trading (not a lot, but it happens more than I like). If you're going to trade, please take to heart all of the advice the ET posters have given you, the primary one being to paper trade until you feel comfortable - and that could be years...

Well, you definitely have to be able to keep track of your money, so posessing basic math skills is a given. I don't think you have to be a rocket scientist, but you should learn the basic mathematics of the market. That means knowing how the bid system functions, and how stocks, bonds, and...

Good God man, why would you want to do that???

Their algorithm at the scam, er I mean scan, site can be condensed down to an old phrase, "the trend is your friend." It merely seeks to grab onto a trending stock. Lotsa sources for those kind of scans, almost all free. Sheesh, even the great (cough, cough) Cramer highlights best of breed...