I don't know if it is mispriced. The risk/reward is just not symmetrical. You can usually gain maybe $20-30 per spread, but the loss could be up...
Luck is not a strategy.. I have a rule - NEVER EVER hold RUT/SPX positions through expiration Friday. In fact, I rarely hold till Thursday....
This is how it works for RUT (SPX is very similar): The RLS is described as the RUT Flex Opening Exercise Settlement. The RLS is calculated by...
This might help - http://bit.ly/1nsH5so
Thanks. The stop loss is always relative to the account size. For example: if I want to risk 2% of the account per trade, I will allocate 10% of...
Well, theoretically you can be assigned on both puts and calls, but I agree that being assigned on the calls is more common because of the...
I'm trading VIX calendars on a regular basis, and most of the time, I'm filled 2-3 cents from the mid on the calendar. The interesting thing is...
If your short options become ITM, you can be assigned. Assignment by itself is not a bad thing - unless it causes a margin call and forced...
I use two strategies to trades earnings: straddles and calendars. Both are non-directional, and in both cases I sell before earnings. Take a...
Completely agree - they are the best. For active traders, the difference in commissions will be VERY significant - IB is MUCH cheaper. TOS...
Agree to the second part, not necessarily the first one. There are a LOT of examples where the implied move is completely wrong, cycle after...
You bought 100 contracts as your first options trade without even understanding how the trade will make money??
TOS has excellent options tools, and they are free if you have an account. If you don't, you can open a paper account and get access to all tools,...
This guy has some valid points, but those posts also have a LOT of inaccurate information. If he was not successful as a trader, that doesn't...
The problem is that people will always look for shortcuts. It is especially true in trading/investing because it is so easy to start - just open...
McMillan is not a good indicator. There are a lot of people who are excellent teachers but terrible traders. If you are willing to invest time...
TOS backtesting gives you all the greeks data.
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