Questions

If The Stock Option Liquidity Is Poor, Can I Get Screwed Out Of Profits?

Question Let's say I've picked a very liquid stock (1 million shares average daily volume) with little option liquidity. I've...

Surrogate Market Positions – How and Why?

Question Over a year ago, I featured this question in my option trading blog. The market conditions have changed, but...

Which Option Strike Price Should I Trade?

Question Can you blog about the strategies that you use to pick the option strike price and expiration month once...

Why Are VIX Options At A Discount?

Question I have noticed that calls on the VIX trade at a discount. Why is that? Is there an arbitrage...

Can You Help Me Exploit The Delta Of An Option?

Question Where can I find real time delta calculations for various options? CBOE has "freeware" that computes Greeks, but even...

How Do I Get A Good “Deal” On A Stock Option?

Question I have heard people say they got a 'good deal' on an option price or that an option is...

Which Option Trading Arbitrage Strategy Is The Best?

Question Among the strategies discussed on your site I was looking for arbitrage strategies (no chance of loss), such as...

I’m Faced With An Ill Liquid Market? How Can I Keep The Market Maker Honest?

Question I am trying to establish a position in a very ill liquid option. It's so ill liquid that I...

I Need to Know When I’m Assigned. Why Is Option Assignment Notification So Screwed Up?

Question I don't know if I am even directing this question properly, but I am trying to overcome the bs...

What Do You Think Of A Covered Call Stock Option Trading Strategy That Uses LEAPS?

Question What do you think of an option trading strategy that buys stocks with good fundamentals and then sells LEAPS...

Doesn’t Stock Option Trading Require The Use Of “Greeks”?

Question Why don't you talk much about the Greeks? Answer What an astute observation and a great question! I don't...

Can I Make Stock Option Trading Profits If The Stock Moves Just A Little?

Question I'm a novice options trader and I just started by buying calls. I have a question that I suspect...

The Market Is Going To Crash. How Can I Make Money Trading Options?

Question I have read your 6/22/07 market forecast of a bullish 6 months ahead. I really enjoy your authenticity and...

A Can’t Miss In-The-Money Call Credit Spread!?

Question If a stock is trading at $25 and I sell the December 7.5 calls and buy the December 17.50...

Is There An Option Broker That Will Adjust My Option Bid Based On the Stock?

Question I actively trade options and as you know, it CAN be very manual work. I am wondering if you...

Which Option Pricing Model Should I Use To Calculate Implied Volatility?

Question I am getting so many different opinions on how volatility is calculated with the Black-Scholes model. If I am...

Where Can I Find Stock Option Charts For Technical Analysis?

Question I am relatively new to options and have been searching all over the web for resources to help me...

What Is An Option Box Spread and How Does It Work?

Question I am reading up on the box spread option, a combination of a bear put spread and a bull...

What’s Your Opinion Of This Option Trade?

Question I bought some Newmont mining options, January 50's, and I'd like your opinion on whether there might be a...

The Options On NWS Are Unusually Priced. Is This A Covered Call Opportunity?

Question I am having trouble understanding exactly how non-standard options trade. For example, there is a non-standard option trading on...

Option Trading Idea – Expiration Strangle

Question I'm not a big fan of strangles so keep that in mind as you read my option trading blog....

Does Your Option Trading Use Straddles or Strangles?

Question In today's option trading blog I will answer a question submitted by Robert F., “Do you trade straddles? If...

How I Trade Options – A Seasonal Example!

Question Today John M. asks, “I am looking to play a seasonal trade on UPS. It usually runs up from...

Descending Triangle Formation – When Should I Enter?

Question This question was posted in September 2006, but the lesson still applies. Koonz asked, "I was looking at to...

What Does It Take To Be A Full-time Trader?

Question Today, Don W. asks, “I’ve been trading for a few years with some success. Can you make a living...