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Hi, my base currency is USD and I want to buy a stock that is denominated in GBP (and also the company's revenues are in GBP). Considering that I plan to hold this position for a while what are the best ways to hedge my position through options against changes in the GBP/USD exchange rate...

Don, thanks for your elaborate responses. I understand what you are saying, but I am afraid that if there will be such a black swan day, it is not just a matter of bad trading day but it can really wipe me out and put me out of business (obviously, if you multiply any amount of large profits...

How do you adjust if gap risk materializes (for example, if some major unexpected event happens that causes all the market to open with a large down gap)? As stocks tend to be very correlated in such events, even if you diversified your positions it might not proved to be a good hedge when most...

Do you mean selling a new option (in addition to the position that I already opened)? Isn't it just increase the risk since my exposure will be to an additional option position? As mentioned in a previous reply, I understand that it may reduce my cost basis but still it means that I increase my...

Hi, I consider using a strategy that involves selling OTM short puts on good companies to capture time decay and possible price appreciation of the underlying, while having a reasonable cash cushion in my account to help in cases of assignments. However, although the companies will be selected...

Thanks for your insights. When you say "capital usage of 50% or below" do you mean that if I have 100k cash in my account my options margin requirements should be no greater than 50k? In addition, if due to market fluctuations the margin requirements go higher than 50k (say, 60k - 65k) would...

I want to do it first for myself, but if the results will be satisfactory I may use it in the future as a track record (and I know that there are many rules regarding this subject). Anyway, I prefer to do it in the right way from the begining. Just one more question regarding the added...

I may have misunderstood this issue, but I thought that returns are calculated just on the margin that was actually required (or the average margin during the period). This may have a material impact in certain situations. For instance, if the trading capital of a proprietary trading firm is...

Thanks for the response. Not everyone who shorts options is basically "naked", especially if he keeps enough cash aside to buy the stocks in case of assignments. I want to emphasize that I mentioned adding or removing cash so that there will not be a large amount of redundant cash in the...

Any reponse, please?

So that means that they use conversion/reversal mainly for closing positions, not as pure arb opportunities? Also, is it possible to enter into arb opportunities such as boxes/conversions/reversals by using spread orders to eliminate execution risk (especially when implied pricing...

Hi, basic question - when calculating return on margin for a certain month (let's assume that the account only includes short options), do you devide the monthly aggregate p/l by the average margin required for these month to get the return in %? Or do devide the p/l by the entire funds that...

When you said that conversions/reversals are also widespread today, do you mean that traders are trading conversions/reversals by using spread orders (so that all of the legs are filled or none of them is filled, without any execution risk)? Or basically trading conversions as arbitrage...

I am referring mainly to the options exchanges (such as CBOE and ISE) but generally I want to understand if the exchanges (and therefore the brokers) can charge "professional customers" not only for real data but also for delayed data, so that if I am defined as "professional customer" I may be...

Thanks for your answer. I want to understand if in case the broker allows such delayed data and I am considered "professional" for market fee purposes do the exchanges charge (directly or through the broker) the market data fee also in this case? or the market data fees charge is only regarding...

Hi, I want to understand if an active trader who trades for a living but trades only with his own money (and not with money of any other people) will be considered "professional customer" under the market data provisions and therefore will be required to pay the higher professional fees? All...

Thanks for the answers. All the market data fees issue seems to me pretty arcane as an issue that was relevant mainly to the times when such information was really exclusive and unique. However, with all the various sources of data that exist today (many of them are free and provide delayed and...

Hi, I want to understand if an active trader who trades for a living but trades only with his own money (and not with money of any other people) will be considered "professional customer" under the market data provisions and therefore will be required to pay the higher professional fees? Thanks.

I already searched in google but I didn't find an updated website that concentrates the volume data regarding the many index options that are traded throughout the world and I thought you may know about such site. It is also possible of course to dig into the exchanges sites and try to find...

really? not the DAX, the SPX or other indexes? where can I see some information about volumes? thanks