Recent content by diogenes7

This is an interesting butterfly trade; make of it what you will. Some rich Dude or Dudette put up almost $20,000,000 this week to enter a butterfly debit trade on the SPY. The bet will pay off $250,000,000 if the S&P 500 is at or near 2400 shortly after the election this fall. The trade is a...

Stockoptionstrader, this is silly: do the math. Exercise and you buy the stock for $55. Add the $9.50 you spent for the right to buy it at $55, and that means you have $ 64.50 invested in a stock that's currently selling at a market price of $63.62, making this a losing trade. So if you did that...

You're naked writing on indexes, and you've out-scaled them. Wow, you must be a bazillionaire.

As a grad, I'm biased toward anything from the NYIF. Check out the Series 56 stuff they have available at the CBOE: http://www.cboe.com/learncenter/nyif.aspx Good luck on your test. PS. I'm a big fan of flashcards. Do a Google search on: series 56 flashcards and you'll see a bunch of...

Big Mike. That's not what she said.

This really isn't a proverb on trading, per se, but it's one of my favorite lines about the market and trading in general. As told by Richard Ney in The Wall Street Jungle: Clearly the lunatic economics of this larceny (stock market trading) appeal to the criminal. The story is told that...

Could you point me to where on the video "The old man got blatantly manipulated out of his short by the stock's MM." Thanks.

Your put will give you the 1 to 1 protection you're looking for up until it expires, but minus the time value (the $2 you paid for the ATM put) that will evaporate as the expiration date approaches. In other words, let's say by expiration your $50 stock has moved down to $49. Your put option...

These are (really) oldies but goodies, so they might not be exactly what you're looking for if you're after something more contemporary, but I think everyone in the market should read them once: The Wall Street Jungle and the The Wall Street Gang, both by Richard Ney. The numbers have...

Mucho gracias, 1245.

I have a formula that predicts the day's DJIA result, and would like to find the best vehicle to trade it with. I'm inclined to just use S&P contracts, or the S&P minis, due to their liquidity and fairly close correlation to the Dow, but would be interested in hearing any recommendations...

I love the market. The best part is that I've only figured half of it out.

I applaud your due diligence, and the application of your Excel skills. I hope you keep plugging away at it until you are comfortable to trade it for real. You mention you've paper traded it for a while. What are your results?