Recent content by emjroll

What are various splits out there for option traders? Looking for different percentages, different capital requirements, and how splits adjust as certain p/l is hit. Also, what kind of risk are people getting in deals?

If an order comes in for a buy write or married put how do you calculate the synthetic call or put price? For buy write to get synth put is it: intrinsic + call value - carry? And the married put: intrinsic + put value + carry? Thanks

Whose the DPM for these options? Are they only trading on the CBOE or are they going multiple list?

Why are people saying he wants this to go down? If you fly a position, you are making the most money on your shorts and if you're short the guts you want the stock to expire at 15. Am I retarded in thinking that your downside bias is wrong?

It's been said on the boards before, but if you like writing covered calls, just start selling puts naked. Synthetically it's the same thing, but you will be giving your broker less commission. Remember: Call - Put = + Underlying therefore + Underlying - Call = - Put

You've got it. Vol is 1 std. deviation. Also, if you want to translate yearly to monthly/weekly/daily price moves use this formula: Price * Volatility * 1/(sq. root of time) for example, if an index is 1000 and has a vol of 20% and you want to know what the normal 1 day price move will...

Ok, Yes Uncovered Calls = Unlimited Downside Uncovered Puts = Total Value of the Stock * 100 * # of contracts, which tends to = ass rape

This is one of the most basic concepts, but I don't think it has been explicitly stated in this thread. Selling options = UNLIMITED downside I was working in the NDX options pit for a while and we had a guy who sold pretty big size of the 2 delta 10 delta put spread every month for about...

Are most options traders here trading vol (staying delta neutral) or speculating on market direction?

Options are priced on a volatility curve. Think of a parabolic smile with different strikes on the X-Axis and different volatilities on the Y-Axis. With a raging stock like GOOG, or quite often in commodities, skew is to the call. This means as the underlying goes up, the higher strikes...

Does anyone know of futures trading firms in Chicago that trade currencies, and if so, what kind of deals are out there? I've traded currency pairs before and am looking for a new deal.