if you start with $50K in cash you have $50K for options trading, $100K for overnight trading and $200K for equity day trades. If you bought...
your day trading buying power does not increase from what you started the day with. if you sell a position you held overnight those funds can be...
lot's of good info and videos on the CBOE site as was mentioned earlier. Dan Sheridan is one instructor that comes to mind
not if he's selling to open...
the same will happen if you buy a call to turn it into a spread rather than a naked call
wasn't a dumb question. nobody is born knowing these answers. most of the time selling the calls is your best solution but before you just...
a lot of places wouldn't let you put on this trade without an account value of at least $2k (minimum for margin). But if you could put it on and...
yeah, good point.
no kidding, guess the buyer didn't have the $ to pay for the stock either
your friend is wrong. you keep what you sold the calls for initially and you sell your stock @ 2.50 that's all that happens with a covered call.
ok, I see what you mean. I thought people would recognize that ridiculousness of the strangle suggestion, but I guess not everyone did. I didn't...
looks right. where's the additional ("safety") come in to play? How much do you think this should cost?
well, would that strategy have made any sense? trades at a range of 132-154 so neither side goes ITM. Vol doesn't rise either so this strangle...
he should have until the market close to liquidate out of his call, and 5 days later to bring in funds to cover the assignment. but firms often...
most of the time it's worded in the account agreement, margin agreement, or even options application that they can do it if the account has the...
you don't need $33,000. Reg T is 50% and you can apply the release of the margin requirement you had on this position. sounds like you will...
what's not? some firms will close out a position that looks like it will be in the money if the client does not have enough buying power to take...
was being sarcastic my friend...of course the strangle I threw out there made no sense
do you have 100 GOOG in your account? any long calls or short puts that may have finished in the $ too? If you haven't checked your account yet,...
long strangle. buy the 132 puts and buy the 154 calls
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