Recent content by Jeff82
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J
New Research Suggests a Reason for Abnormal Returns in Index Put Option Strategies
Wow, I learned something today. Thanks. -
J
New Research Suggests a Reason for Abnormal Returns in Index Put Option Strategies
Fascinating, the 30-day atm prices I was looking at happened to fall on an ex-dividend date. So, that's why the puts and calls were not at parity. If you're opening your trade by selling at any given price and checking for call/put parity, which is what the CBOE study was addressing, you... -
J
Do All-or-None Orders Negatively Effect Fill Prices?
I'm usually rolling buy-writes and short puts or spreads on the SPY and QQQ. At times I get stuck with partial fills that meet my limit orders. I'm wondering if I added all-or-none conditions to the order, if I would get poorer fills while I'm middling the market. Intuitively I'd say yes, but... -
J
New Research Suggests a Reason for Abnormal Returns in Index Put Option Strategies
Interesting, shorter term ATM SPY calls and puts trade at parity. OTM prices show the put skew and 30 day ATM pricing shows a put skew. -
J
New Research Suggests a Reason for Abnormal Returns in Index Put Option Strategies
CBOE took a look at why their cash reserved put index indicated that put writing achieved greater returns than their buy-write index. They found that most of the "excess return" was attributed to the modeling assumptions used to roll the contracts (SOQ to VWAP). In my own experience... -
J
Question about dividend arbitrage
-- Or, you could buy a put, buy the stock and sell an OTM call. But, the numbers won't add up for a retail trader. And, the time premium for puts will increase as the underlying approaches ex-dividend. -- Yes, the dividend is offset by the markdown of the underlying; so, there's no point in... -
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Stocks for Weekly Options Day Trading? No Overnight Holds.
SPY and QQQ for sure. If you want high volatility IWM and USO. If you want lower volatility GLD and TLT. -
J
OXY Trade. Your thoughts.
I personally don't like the idea of selling short-term calls against LEAPS. But, I've honestly never tried to buy a warrant and then sell a LEAP. So, I can't say if the idea has merit or not. If you have some specifics, that would help. Ignoring the math, here's some things I'd question, if I... -
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OXY Trade. Your thoughts.
Why do you want to use LEAPS and Warrants? Why not just do conventional diagonals, if that's what you're trying to do? -
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your worst mistake
As a newbie trader my biggest mistake was overleveraging credit spreads. -
J
Getting assigned on short calls
It makes you wonder how it would work if it were a spread. You're assigned on the short contract and can't get the underlying, and probably can't get the underlying if you exercise your long call. If that assignee didn't have shares, would the short obligation stay with you or be transferred to...