How much do you know about playing the stock market with options?

The following are highlighted options insights and ideas from

TheStreet.com

.

Mad About Options: Lehman Lowdown (Video, Sept. 9)

Jud Pyle and Matt Buckley review Jim Cramer's recent

Sept. 5 comments about

Lehman Brothers

(LEH)

and explain why a risk reversal is an appropriate options strategy. The Mad About Options crew also breaks down options ideas

Merrill Lynch

(MER)

and

Anadarko Petroleum

(APC) - Get Report

.

To watch the video, click the player below:

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For more information about Mad About Options, visit

www.ONN.tv

.

From

Options Traders Fearing Trouble at Merrill

(Sept. 10):

While Lehman's multi-pronged "disclose and survive" plan provided a modicum of support to its share price (and brought implied volatility down somewhat), other brokerages were hard hit by Lehman's news, perhaps none more so than Merrill Lynch, where option traders appear to be positioning extremely defensively.

Read the full version of

Options Traders Fearing Trouble at Merrill

(

RealMoney

access required).

From

Dykstra: How I Trade

:

Can you explain how you reach your goal of $1,000 gain per position?

My methodology is the same with each of the plays. I generally place a

limit order

to buy 10 option contracts of the company I like on that particular day. Each contract basically gives you exposure to 100 shares of the common stock of that company. I seek to get a $100 increase in the option price, which translates into a $1,000 gain.

Read the full version of

Dykstra: How I Trade

.

Image placeholder title

From

Dykstra: Why I Dislike Stop-Losses

:

Over the last few years, readers have consistently asked me why I don't use

stop

-losses in my deep-

in-the-money

(DITM) call suggested trades. They argue that the use of a stop-loss order can protect against sharp losses if a stock plunges.

So why don't I like them? Because each trade is different and market conditions change from day to day. And while I have a system, I think applying a blanket methodology to realizing losses is insane.

I have developed a system that dictates what I do when a stock moves against me. That system calls for averaging down, or buying more options contracts as the price of the pick falls to certain levels.

I actively monitor those levels and set and reset them on a regular basis. It's not a set-it-and-forget it type of thing.

Read the full version of

Dykstra: Why I Dislike Stop-Losses

.

From

A Rocky Market Is Right for Options

(Video, Aug. 24):

Gregg Greenberg:

"

The

Gateway Fund's

(GATEX) - Get Report

strategy is perfect for nervous nellies:

Own

large-cap stocks

like

Exxon Mobil

(XOM) - Get Report

,

GE

(GE) - Get Report

and

Johnson & Johnson

(JNJ) - Get Report

,

sell

index

call options

to raise cash and

buy

puts

to protect on the downside."

Walter Sall, Chairman of the Gateway Fund:

"If I have a portfolio that is totally

hedged

... and it displays the same risk characteristics as the

bond

market, but a

cash flow

that is historically five times as high as the bond market, wouldn't I rather own that, if I'm not taking anymore risk in order to get it?"

Greenberg:

"And judging by the "

VIX

," or so-called fear index, risk is certainly on investors' minds."

To watch the video, click the player below:

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Options/Futures section

.

This article was written by a staff member of TheStreet.com.