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This guy was doing synthetic short naked options. He traded too big for his account size. The small Delta he was short became large Delta with the market rally which is equivalent to a large position relative to his account size. Volatility is near all-time lows and his strategy was to sell...

All of these leveraged ETFs have a prospectus that's hundreds of pages long. In there you find How they hedge these products with OTC derivative's traded with related counterparties that Mark up spreads and take money from investors. The long-term returns look the same as buying short-term...

Warren would never trade on margin. Even when he sold naked puts on the stock market in 2008, the agreement with Goldman Sachs was that they could never make a margin call. His biggest concern was that he wanted to wait till he was right and didn't want anyone else to tell him that he had to...

He was referring to the local menu. Chickens feet for breakfast and pigeons brain for lunch. And for Westerners, you can find pancakes only for dinner. I don't know why people think trying to live frugally is such a painful process. You can think of it like a game which requires great thought...

You can bet the multi million dollar annual bonuses are not clawback! But the guy in the mail room would've been sacked and ......the whistleblower.

The other issue google has is stock options to employees. They gave away $1.8 billion in stock options just in Q4. They are changing the way that they report this and implicating a higher tax rate. This one off item never is just one time but just keeps getting bigger each quarter if they have...

Her strategy is equivalent of selling premium and effectively being directional until the market comes back. But if she decides to sell premium into inverted spreads, she locks in big losses. As Long as she rolls forward, she can collect big bonuses on realised gains and ignore the losses for...

Suggestions are most welcome. To be successful in trading you need an edge. My suggestion is take advantage of your current situation which allows you to trade the domestic Indian market. Foreigners are not allowed to trade the local market there. The equity option market is extremely...

I would be highly suspicious about firms offering to hire you with no capital required. You need to talk to people in the market to find out who are the guys behind the company and what have they done in the past. If you don't know people, send me a direct message as I know most of the players...

Those guys are dealt with by liquidity providers who are connected to all the different exchanges across the globe. They can try to move the market but once it has moved enough, I will take the other side of their trades and arb across other platforms. It's no different from other products...

Get a TD account and use their "Ondemand" platform which is only one click away from the trading screen and replay the option markets from the past. I like to do this before doing an earnings play. I will go back in time to the last four quarterly earnings reports and play the last hour and...

If you are clever enough to know how to manage money in a Casino and walk away with too much cash, they put you on the black list and you cant go back and take more money.

Just to be clear, Karen was not trading that portfolio during 2008 meltdown. If she had, the fund would have blown up sooner. When the markets crashed in 1987 and 2008, the brokers increased the margin required to hold naked positions and squeezed all the short sellers out for massive losses...

I would think there is a congruence of forces which change the risk profile for these type of trades. A summary would be: 1. The asset management community liquidating a stock below $5. 2. The exchange threatening removal when trading below $1 for six months. 3. The analysts and auditors...

I'm an individual so can give advice without company influence but take it for what it costs you which is nothing... Its the Theta decay that is killing you being long slightly OTM call options that expire in the next few weeks. You will have to change your PnL profile to stop the bleeding from...

The part of these reorgs which is more common than people think is the amount that management get as part of the restructuring. They typically are given stock options equivalent to all the common shareholders combined. In this case, they also get .5% of the new equity. The real value of those...

The poor mans covered call with ATM long vs ITM long should give you a positive Ultima and achieve your goal. Buy longer dated ATM call and sell shorter dated OTM call.

This depends on what was your original intent. Did you short futures and buy a bunch of cheap calls to hedge the risk of the market going up? OK - then the hedge has helped you and done it's job. The delta on those calls has changed and the vega moved up as the strike is closer to the money...

They go back to March 2012 for the stock and options for a penny stock $MEMP which was 18.50 on that date with 6 option strikes publishing bid/ask spreads with no volume traded at the time. This can then be played back second by second - it's crazy when you think of the power of their database...

This is an interesting approach and I have had some luck doing them. I guess you have to look at the risk vs reward. What happens with a single option payoff vs the calendar and when you put them on. The key to all of these strategies is to make sure you are locking in higher gains than losses...