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Here is some posts I did on futures options on my blog. Part 1 http://sigmaoptions.blogspot.com/2009/08/future-options-bit-different.html Part 2 http://sigmaoptions.blogspot.com/2009/08/futures-options-part-2.html Part 3 http://sigmaoptions.blogspot.com/2009/08/futures-options-part-3.html...

I guess so. :confused: American metaphor is somewhat bewildering to those of us across the big ditch... who speak true English. :)

ATM verticals, but as Spin points out, the cost is capped upside. You could always go deeeeeeeeeeeeep ITM longs, though not without downsides as well.

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After some research on what Kool Aid is ( we don't get that outside the US) and what "drink the Kool Aid" means... **wonders whether Kool Aid has already been consumed. :D

Perhaps some Socratic questioning would be amusing. :)

Sounds like something Lao Tzu might have said. ;)

:)

1 futures option is an option on 1 futures contract.

Don't the ***===>>SECRET<<===*** strategy only Soros et al (and our friend for a fat fee) know.

Ahh Aussie options. Basically on any position substantially away from the money, the Aussie MMs are going to be able to take you to the woodshed and have their way with you, via the spread. It's a problem of liquidity in a small options market. If you go into front month expiry, you...

Confused :confused: So you are long the wings?

Supposing you had the following (say the market is @500) -1 580 put +1 600 put -1 420 call +1 400 call That's a "DITM IC". I presume that is what you mean. But it is synthetically equivalent to: -1 580 call +1 600 call -1 420 put +1 400 put An OTM IC There is no...

What would DITM do that OTM doesn't do?

This may be wrongly attributed. Upon checking Hidden Reality, this quote does not seem to appear in there. Apologies if so. But still a good quote, whoever said it or wherever it is from.

Like Norman & MTE say... Good luck (but it won't work) You can hedge delta with underlying or morph the strangle gradually with verticals, keeping delta neutrality... buuuut you're effectively gamma scalping in reverse. If +decay > the losses you lock in when you hedge, you make a profit...

Here is an article on expiry cycles http://www.investopedia.com/articles/optioninvestor/03/090303.asp

There would be a component for cost of carry as well

I did read it. I was after a real time example. One that can be shown in a real live options chain. I'm not disputing anything said, I just want to see it for myself. Is there anything wrong with that? Thanks

I would love to see a real time example of non-parity of American style options before expiry. If it can be shown, let's see it.