Arbitrage is for the big players. They trade in huge size and are willing to take very small profits per 100 shares. Your commissions are far...
1) Using stop-loss orders with options is a big mistake. 2) A sudden change in the implied volatility can make a substantial difference in the...
You cannot determine 'safe' by past performance. Risk must be estimated before the trade is placed. Mark
Write and sell are equivalent terms. Write simply refers to 'writing an option contract.' The term is most commonly used by a stockholder who...
More than a brain fart. Careless. Thanks for the correction. Mark
Collar: Long 100 shares Long one call Short one put Options DO NOT have same expiration and strike. see link for more details Mark...
You just learned of this strategy today? You have no experience using it? You have no track record? Yet you propose that someone else...
Question: Do you know what you are trading? These are NOT options on the VIX index. These are options on VIX futures. They are also...
Unless you want to sell calendar spreads, most of your negative vega positions are the result of being short some options. Sadly, that means...
Agreeing with jwc: 1) It's not quite right to assume the market must move 700 or 1200 points in 48 days. Think how much you would lose if the...
When they <b>already</b> own stock, they cannot hedge by buying calls. They must sell calls or buy puts to hedge. Mark
The numbers are not the issue (right now). Here is what you are missing, and take my word for it, if you don't understand the following, you...
1) You can always sell your option - unless it is so worthless that there are no bids. 2) Yes, you can close your put (by selling) at any time...
Trust you? You have no idea how to use option terminology correctly. The term 'in the money' has absolutely NOTHING to do with the your...
I thought it saved them automatically. Quickest way to get answer is to call tech support. Mark
I believe most traders would have better results if they ignored B/E. Once you own a position, it's your job to manage risk and exit the...
You are letting yourself get confused over simple situations. The BE is not relevant. The option owner - the person who has the right to...
It's jibberish. Stocks do not get pinned - but normal distribution tells you that some stocks MUST end trading at the strike price. When MMs...
This seems right to me. In a world where anything ca happen, refusing to cover short options when they are available for 5 cents is a huge...
IB will NOT close it out for you. IB has nothing to do with the process. The OCC will issue an exercise notice. Your account will be...
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