The characteristic of many spreads is that P/L doesn't change very much for small to medium underlying price moves. I usually have to wait...
The ITM call will likely drop in value when the stock goes ex-div. How much it drops depends on a lot of factors (how DITM, etc). In most cases,...
Go with IB. Thanks to some posts by Spindr0 a couple of years ago I changed over from OE and it's been very good for me. I still have my...
Nitro, Not to belabor, but I didn't ask any question. Don
Nitro, If selling puts is bad advice, then buying puts has to be good advice. So, in effect, you are advising buying puts under the same...
Look at it this way, it's a lot harder to make 15% trading Options than trading stocks. Think about this, options are a zero sum game. That is,...
Why not? It's probably the best place for a beginner to start. As you likely realize a short NP is the equivalent of a covered call and I think...
Don't forget about the alternative of selling a naked Put. It's probably not as exciting or as potentially profitable as the other ideas, but...
With most brokers that I know the client still gets the interest. One notable exception is that in an IRA some brokers screw you on the...
Thanks for the interesting data, but I have a few questions. 1) What is a 30% incentive fee? 2) What does CTA mean? 3) How does a $1 premium...
re:"The March would reasonably lose 1/6th of their backwardization which is 23.20 now which would be 3.86 or $386 gain. So best I can figure the...
re:"If the SPX goes up to the strike the DITM Put Cal will indeed make a good profit ". Agree. Actually profit starts at roughly 1500....
Because the SPX is a European style option the DITM contracts are subject to backwardation (check Google). Backwardation causes DITM Puts to...
Okay, I'll take a stab. Mind you this is just a guess. Multiply the dividend amount by the probability of closing at or below the strike. You...
If bid price suggests that the call holder can make more money by exercising rather than selling the call you will be at risk for assignment....
I think that you are confusing a cash secured Put with a covered Put. As I recall, a covered Put is a combination of short put and short...
Actually Rosy may have a point. That is, in order to price options correctly you need to know future volatility. Given that is impossible, by...
I believe IB opens at 12 noon on Sunday. http://www.interactivebrokers.com/en/software/systemStatus.php
An example of favorable tax treatment would be Long Term Capital Gains. LT Cap Gains get taxed at a lower rate then short term gains. Depending on...
If your transactions don't straddle tax years and you don't have LT Cap Gains then you might consider just reporting each transaction...
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