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IMHO: Assuming, you wish to employ same trade strategy, but just use options instead of the underlying... The slippage with options will be larger. However, IFF your trades can tolerate the additional slippage (think of it like a hysteresis), you may do well. -- If new to options, you may use...

Selecting "ignore" (for OP) improves stress level for this thread.

Then how do you derive "r"? IFF you attempt to derive it from using shorter term F(t) (with the term in question), you must isolate interest from dividends impact which seems problematic. Inquiring minds want to know!

FWIW: Another approach could be to extract the proper interest rate using box spreads on the targeted option chains. This would tie the interest rate to the specific security. I do not do this currently as it may be problematic with wide bid/ask spreads. I don't require that much precision on...

You should use same tenor for interest rate as for your option. For most products, and under 2 year terms, LIBOR rates to closest term and adjusted from that to actual term seem to work fairly well. However, I think that may not be best rate for HTB underlying's, such as UVIX. If you subscribe...

Agree! Note that CBOE new 1DTE SPX IV (https://cdn.cboe.com/api/global/us_indices/governance/Volatility_Index_Methodology_Cboe_1-Day_Volatility_Index.pdf) is using Business days instead of Calendar days to partially address this. Eventually, folks (vendors, brokerage houses) will clean up...

FWIW: I have not observed any broker properly providing IV for tenor comparisons that are useful across business vs calendar days, so Power Etrade may be similar to the crowd. -- I had limited success converting to business days for an IV that is consistent across tenors, but is a lot of work...

The IV reported on SPX tenors is an annualized value based on calendar time. The Monday tenors are lower than the neighboring tenors (fairly consistently) due to the weekend (non-trading day) effect. Hopefully @destriero will chime in with his insight on how to properly account for this...

It depends on what you are trying to do. VXX fell out of favor when they screwed up a few years ago, so lost its luster. As a replacement to VXX, UVXY is a near (possibly superior) product with a 1.5X leverage to that of VXX and is behaving (following its mandated operation). For going short...

Been wondering when it will occur myself!

FSU's statements are spot on. The AM SPX were first introduced with the Weeklies being added much later. For a time, the lions share of the trading was only with the AM SPX options. The PM expirations have gained favor and are preferred by most retail traders now. -- The notion that trading...

If you find a link to the detailed disclosure (white paper?) on how VIX1D is computed, please post. I have not found it yet!

IMHO, I think O.P. realized he was going down a rabbit hole by attempting to equalize directional exposure, when a straddle was really not proper choice for what he wanted. -- I am guessing, of course.

Do not assume!

A better question would have been: Can I trade Options on /HE futures on TOS PaperMoney platform? Answer: NO! But is seems you already know that! But if you just want to chart it, you can: Image here from Greenshot: ->"https://i.imgur.com/LJk5p9x.png"

This?

If you really want to short, but shares are HTB or NTB (or even if ETB), you could use synthetics. They are more handy when you know how long you want to remain short. For example, you thing you may need a month or two, and expect price to drop below 45, you could do this for a small credit on...

Option related posts seem to primarily use imprecise (and therefore significantly ambiguous) terminology. Ripe for those favoring TLA's (Three letter acronyms since they take less effort to say/type than clearly specify what is meant!) that are fine as long as the person on the other end of the...

1) Having a firm understanding of what one wants and will be comfortable with (knowing yourself) is a prerequisite. 2) Avoid ambiguous questions. 3) Questions should get you closer to the truth (in sequence to discover the path to more understanding). Nobert has provided good examples...

Learn how to ask yourself better questions! -- Is working for me.