Recent content by hopback

as stated, diagonal

approximately, also assuming no change in vol. but your thetas will increase each day as well

Treasuries. Options up to 3 months out generally use a 90 T-bill rate, longer that 3 months use a bill or note with corresponding maturity.

http://www.quantonline.co.za/Articles/article_volatility.htm

the floor can work it

Thanks for the amazing insight So, let me see if I understand this correctly... If demand rises then price rises too? Wow! I never would have figured that one out Although, I do seem to remember something about an inverse price/yield relationship

an inverted curve is very bullish? monetary poilicy has been unable to corrct this invertion over the past year

Yeh well, hear's a few more facts Daily Treasury Yield Curve Rates 04/25/07 1mo 3mo. 6mo. 1yr. 2 yr. 3yr. 5yr. 7yr. 10yr. 20yr. 30 yr. 4.94 4.97 5.03 4.90 4.63 4.55 4.55 4.57 4.66 4.91 4.83

maybe I should specify that you should only use cash in your acct to buy the bills. don't create a debit balance

Buy t-bills (1-5% margin depending on your broker) Use the excess equity for your option strategies. back spread your outright longs to reduce cost. (if pricing allows it) the treasuries will give you a little cushion since you seem very concerned about interest.

I know Schwab used to (don't know if it's changed) pay interest only on cash balances in excess of any short market value. I've heard others do that as well.

I guess it depends on your broker/platform. I'm not an IB customer but I have the ability to route to them. but only in standard increments.

Route to IB. You can get filled in pennies but you still have to bid/offer in standard increments. or, trade a stock on the penny pilot program

Do you mean Prop firm or Brokerage firm?

When I used to scalp the Notes and Bonds, I found that if I joined the bid, by the time someone hit me I didn't want to be long anymore. I usually tried to be the last one to buy the offer as it turned bid or the last to sell the bid as it went offered. If I missed buying the offer I knew...