Recent content by xenolith

thx guys, very clear answers...

mskl, why is the theoretical worth more than $130 on american options, and not european? If you get assigned the 590 puts, wouldn't the premium earned offset the loss?

hmm, but at the same time if you took the individual quotes of all those options, and legged in (selling on bid and buying on ask of each leg), you still get a spread that earns a risk-free profit of 2.25.... sell GOOG APR 590 Puts @ 136.40 buy GOOG APR 590 Calls @ 0.15 buy GOOG APR 460...

these quotes were from optionsxpress....but the odd thing is that from what i can tell, when you put together a spread on the optionsxpress trading screen, they quote the spread from the nbbo of all the individual legs. That's why I was surprised (and now i'm curious whether it's actually...

a newb question: i was looking at some option quotes (april google to be exact) and saw the following: if one were to: sell GOOG APR 590 Puts buy GOOG APR 590 Calls buy GOOG APR 460 Puts sell GOOG APR 460 Calls the bid/ask for the spread is: 132.55 / 134.05. So if one were...

ProfLogic, I'm not sure what you mean by: "Price is cyclical and oscillates with perfection as well". What is imperfect market oscillation? By perfection, do you just mean that every top has a corresponding bottom (and vice versa)? Although in the spirit of individual thinking I don't want...