ARTICLE SYNOPSIS ...V. 22:3 (48-50): More Mileage From Margin by John Summa Looking for ways to get more from your margin? Try this. As an option writer, which by definition produces limited profit scenarios, I am particularly concerned about finding ways to lower my cost of trading. One way is to get maximum mileage out of my margin capital. So I decided to undertake a comparative study of margin requirements for option trades in two popular markets used by option writers: the CBOE's Options Exchange (OEX) and the Chicago Mercantile Exchange's Standard & Poor's stock index futures. If you are serious about opt...
ARTICLE SYNOPSIS ...A Put/Call Ratio Oscillator To Pinpoint Market Conditions by John Summa Who says the put/call ratio doesn't work anymore? Here's an oscillator that's great for pinpointing intermediate market tops and bottoms. What's the ideal time to write an option? The ideal time to write a deep out-of-the-money (DOTM) put or call options credit spread? While charts may tell you when to exit such a position, the correct use of put/call ratios offer an excellent way of determining just when to enter your trade. Here's one approach to interpreting equity-only put/call ratios, combined with my own volume-...