Recent content by China man

Big surprise no responses!

What is your first gut feeling when recommended this trading strategy? Buy an ATM straddle 1 by 1 on $XSP When/If market moves to breakeven price mark buy another ATM straddle 1 by 1. When/If the market moves to breakeven price again buy another ATM straddle 1 by 1. Repeat until...

Looking for a calculator that caculates sigma on underlying markets using standard deviation. Would like to use percentage likelihood in my trading decisions. Anybody know of one?

Seems like indexes with smaller absolute prices would be best, but maybe this is presumptuous. SPY moves over a point a day easily. The qqqs much less. The qqqs seem like you would have to readjust the trade with much less frequency say if you were trading 50 share/1 contract lots. Anybody...

As the market stands now on November SPY; You could buy one 102 put to cover the sold 105 put. -100 SPY @ 108.08 +1 108 Call -2 105 Puts +1 102 Put Net debit of about 56 cents, but with intrinsic of 8 cents, total risk is 48 dollars before commissions, about 5 bucks at IB. Max...

Ratio collars with shares or ratio spreads? Let's say you Buy a 108 call on SPY sell the shares short and sell 2 105 puts for a net debit of zero. It seems like these do work as long as you get out before the sold legs become ITM, although I have not tried this. Conversely, when the ratio...

Lets say you can make 100 dollars a month on te SPX/SPy combo. The margin requirements amount to 30 dollars. You make 1,200 dollars a year doing front month arb. That is not any better than a bond and marginally better than the risk free interest rate.

No your are right. I have never put on one of these trades because a hundred bucks or so is not worth tying up 35 thousand dollars in margin requirements. It is not pure arbirtrage, there is some risk, if one get callled out on the American options regardless of the SPX hedge. Plus small price...

Options House charges EFP fees for ITM contracts and cash index ITM as well. IB is the only one I know of that does not. If you trade 'til expiration and leave them their IB is more efficient in most cases.

Option Vue is the best option scanner I know of for retail investors, and it is in my opinion very limited. Better off spending your time looking at the chains yourself than running their pointless scanner. I have a feeling that institutionals and professionals hooked up on Reuters data feeds...

The ten by ones are possible, no there is nothing wrong with these guys. After commission how much is left? You can do SPY/SPX ten by ones at similar strike prices and the american style contracts do run a little higher. But most margin accounts don't account for the hedge. End result: a...