Recent content by WalterSobchak

Not sure what market you are looking at, we are talking about natural gas here, that spread closed at -.595

API's come out. Similar to DOE's but not given as much attention because reporting of data is voluntary.

Papa, I trade natural gas for a living and respect your thoughts, the points are all well taken. My issue is this: last summer, as the market continued to rally and make new highs, we all heard the same things over and over again. No LNG. Gas was cheap on a btu basis. Storage levels were...

you are looking at the wrong spreads rtrader. hj is a dead issue at this point. the contango is widening further out the curve, in the last two weeks, v09/f10 has widened from .90 out as far as 1.40. hj is not the spd it used to be on the upside, and it has limits of how much it will widen in...

dmo- Yeah, you're right, I did at first read the question incorrectly but I still contend that the answer is the same. Same principle behind the answer I believe. In response to opt789, as dmo stated, we are talking about options with the same implied volatility. If a put and a call...

I'm not going to beat a dead horse on this one. I was an options market maker on the floor for 10 yrs and trade options off of the floor now. That was the answer to the man's question. I guess we can agree to disagree if you think that I'm wrong.

It doesnt matter, it still is a fact that when pricing these options the lowest the underlying price can go to is 0 and the highest is unlimited. It is the same reason why a straddle has a positive delta. In other words, in this example, if the s and p is trading 1400, the 1400 call has a...

You guys are overcomplicating the answer. Yes, there are inherent skews to all markets. For instance, in natural gas there is a call skew, in crude oil there is usually a put skew. This is just a representation of where there is a bigger demand for price protection, which is what these...