I'm usually happy when the call gets exercised early in such a situation -- it means I immediately earn whatever time value was left on the call. And since I...
OK, I get it. Thanks, Chris. This happened to me most recently on Thursday, May 10th with LLY. The ex-div date was May 11th and the dividend was $0.49. Here...
I think you and I are using different working definitions of "extrinsic value." My understanding of extrinsic value is that it is equal to the price of the...
I think what he is saying is the dividend is factored into the price of the underlying, (not the option). It seems 'logical' that a stock that has declared a...
"What we got here is... failure to communicate." - Cool Hand Luke (1967) I see. Here's the thing. If you're a covered call trader and you're assigned prior to...
"I think you and I are using different working definitions of "extrinsic value." I am confused Chris. I never mentioned extrinsic value and was actually ...
Hello Folks, The ATM's have the highest TV premium amount, and therefore, the highest sensitivity to Vega. Got it. And, the further out in time you go, the...
The best way to play a spike in volatility is to own otm premium. And usually the optimal strategy is a backspread - especially if you can own it for a credit....
Michael, Couple of follow up questions on these backspreads, appreciate your response  1) What should be strike difference (both strike width and no.of...
There is no standard answer. It basically depends on if you are playing an event or just betting on an increase in volatility over some upcoming timeframe. ...
Take what Mike said, and, get yourself an options analysis software, or, hopefully, your broker has P/L, The Greeks, and Time to expiration graphing ability....
I think this might be a bigger problem than we are let to believe. These black exchanges do deal in the same commodities we retail traders do and according to...
Hi all, Apologies if this has been done to death already but I'm curious to find out everyone's thoughts. I am a vertical credit spread trader and most of the...
Sherman, First off, SPX and RUT are not ETF's. In fact, they don't even exist other than in a hypothetical sense. The options that trade on the SPX and RUT...
SPX and RUT have floor traders. Some of the last in existence. SPXPM is the new replacement, and it is much better for us retail traders. Yes, the commissions...
Thanks for your reply Chris. I'm such an idiot. I shouldn't type posts late at night with a foggy brain. I know that SPX and RUT aren't ETFs. Don't know why I...
Hi, I was considering going for a Call Ratio Vertical Spread to bet for a rebounce in the Italian stock index, FTSEMIB. I do undertand that this kind of play...
Right. As you increase the size of the position being traded the commissions on the smaller ETF products begin to take a toll, assuming that your commission...
bought the stock. sold the June call net position is covered call (long stock, short call) Scott Bassett ~~ sent from my iPhone To: OptionClub@yahoogroups.com...
I've been trying to trade SPX and finding it very difficult to get filled. Â Even trading near the money, and the nearby month simple vertical spreads take a...
Not being a former floor trader I have limited insight into the dynamics experienced in the pit, but as someone who has traded the SPX for several years and...
Dale, I trade SPX, monthly and weekly too. The key is to be patience. Most my orders are filled during the last 30 minutes. Sometimes I get lucky and get weird...
Another potential alternative to the SPX options is the SPXpm options, which although they are still exclusive to the CBOE, they are fully electronic, and...
Hello, I recently lost my bookmarks and am trying to find a wonderful investment education site that I lost in my bookmarks. The site was set up as a narrated...
How many contracts? I've been selling Call spreads usually get filled at the mid-point. W/ the large spread, I tried to leg in, tried to buy a cheap call for...
