Derivman, I'm sorry, mate, but after reading this it just makes me wanna give up on trying to help you understand these concepts.
Thanks TraderMojo. With due respect the following article, http://options2.registeredrep.com/myths/ does not show, a. The name of the person who wrote the article. b. The article does not mention any research carried out. I would rather see hard evidence backed with real research. Cheers. Derivman
You're right, I'd be skeptical about anything the Chicago Board Options Exchange has to say about options - they are not likely to know what they are talking about and probably don't have very good access to data to base their judgements on. Why don't you show me the hard evidence backed with real research that you have? After all, that is what you've been working up to.
Options can only be purchased with cash, so no buying options on margin. I believe this is an SEC reg. Of course, if you have a portfolio of stocks, you can margin against them and hold the options in cash.
ROFL! Derivman is a ridiculous troll. I suggest you walk away from this thread and don't look back, lest ye be turned to salt. It is perhaps unfortunate for the OP, but now that Derivman has glommed onto the "90% expire" sound bite, he will run it and this thread into the ground. Just move along and enjoy the better things in life.
I think everyone is aware that Derivman is in fact the same troll that got banned at the weekend who went by the aliases CYOF and theht. I was however curious to see what hard evidence he was going to come up with to refute the links I posted when his very own "expert source" that he is championing on the other thread also debunks the 90% expiring worthless myth: http://www.optionsnewsletter.com/expert2.asp Unfortunately, this expert then goes on to say a lot of nonsense with regards to options not being a zero-sum game.
I am not going to post in this thread any more as I can see that I am not welcome here. I apologise if my simple basic questions have offended anyone but as I mentioned previously some of us newbies take our trading education seriously. I know some might find that hard to believe but that is their own choice.Cheers. Derivman
I will leave you with these links to consider as I have just posted them on another thread. You may find them interesting and if you decide to partake in the discussion on the other thread please refrain from going off topic. I have posted the links here as they are very relavant to the topic of this thread. Your comments and views on these links will be greatly appreciated and also appreciated by other newbies that visit here as well, I hope. Cheers. Derivman http://www.trade2win.com/knowledge/articles/general_articles/the-cash-cow/?r http://investrio.investopedia.com/articles/optioninvestor/03/100103.asp http://www.optionsxpress.com/educate/investing101/players.aspx?sessionid=
i applyied for portfolio margin under IB will they have the same margin requirement for ES and SPX option sellers ? do they have interexchange margin ? like short a SPX call covered with an ES long ?