If it does go bankrupt, you lose your entire investment instead of your entire investment. And if it doubles, you make 17% instead of doubling...
I'm sure he'll come out and show his face if you pay your accountant peanuts ;)
I think Spin is talking about going long to short in the same account, when he has a deductible loss upon closing the original long trade. It...
Naked put = covered call. Instead of buying the shares and writing a call, don't buy the shares and do write a put. Same strike, same date....
Umm... here:
I'm going to out on a huge limb here and assume the objective of covered writing is to earn premium. Based on that assumption, you should be...
Market makers don't lose money when you make money. They are not playing a zero-sum game. They make money every time you trade, both as a...
You don't really need to know anything about the greeks for this, but a basic w**king knowledge will help somewhat. You're a swing trader. That...
Well, there's your problem. There are fresh options every month. You can take some time to learn, and there will still be trading left to do...
To put into perspective how badly this type of strategy can go, one of this monkey's trades was brought to my attention today. He wrote a 2009...
To kind of summarize what the others have told you, what you are doing with this approach is: 1) Assuming the risk that something will go...
Sure, the time value lost will be minimal, but all that intrinsic value is potential loss. Your supposed protection is so far out of the money...
For starters, you could have an equivalent position and save yourself 100 points by buying the 150 put and the 250 call instead. Those short...
People regularly ask for historical options prices, and I have yet to see a single person explain why that information would be useful to them in...
Don't get ahead of yourself, xflat. The big hedge fundies don't start pinning stocks till Wednesday.
The total delta is instantaneously the same, but you should also look at gamma, which is the rate of change of delta. An ATM option will have...
You mean, you get filled if the price gets better but not if the price gets worse. With a market order you get filled even if the price gets...
That's a little wide for my taste, and it sounds like the options you were trading weren't that expensive to begin with, since a "FAST and FAR"...
So why not place a limit order at the market price? What makes you think that would turn out any worse? I'm with IB. And I have never placed...
Why risk getting filled at a bad price with a market order? With a limit order you specify the maximum you want to pay, or the minimum you want...
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