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Yes, it is allways that way. I didn't expressed tha question right. It is a general question. I am asking why the itm calls are priced that way in FOPs, which is very different than in equity options. But the two are american style. I have heard a lot of times that american style itm calls must...

Hi yes of course. ES Sep, 17 dte. is at 2893.00 2875 call mid. 35.75 so intrinsic is 18.00 and extrinsic is 17.75 2875 put mid. 17.80 Why the call has no extra extrinsic value? like in american style equity options. thanks

Hi The ITM calls in american style options are supposed to have a higher extrinsic value than the same strike puts. this extra value cames from the interest component and also, I am not sure, from the early assignment risk. Please correct me. But this doesn't happen with american style FOPs...

Hi Some ES options are american and other european style options. As a complement to American-style quarterly options on standard and E-mini S&P 500 futures, EOM options and weekly options – with Monday, Wednesday and Friday expirations – are European-style contracts that offer expanded date...

Hi So, the credit will remain in my cash balance until I close the position? And consequently I will recieve interest for that credit. Is that interest priced in the value of the fop options? e.g. If I sell a call for a 1.2 credit and at the end of the day that call is valuated at 1.4, they...

Hi One question about FOPs. If I sell a FOP on ES, am I going to receive cash ? and will I receive interest from this cash ? My broker pays interest on positive cash balance. If I sell /ES i don't receive cash, it is not like short selling stocks or ETFs. With /ES the settelment is different...

I must recognize that I never have thougth deeply about this question. I don't really know what maret makers are pricing when earnings are coming. I have some questions, What are they quoting for earnings? They are expecting a % movement in the underlying ? but a % movement from where? from...

Hi You said that 10-20 days before earnings the iv could be underpriced. My question is, in what moment does the market makers initiate to price the earnings iv ? how many days before ? it depend on the stock ? If you have the capacity to look what usually is the straddle price the day before...

Hi Maybe someone can take a look at what happened with iv during that hour. I doubt the iv was the same in the first 5 minutes bar than one hour later. In my opinion the iv increased during that hour. The market makers would keep increasing iv as they saw the downside movement was going on . So...

Hi wow. Very interesting thread. These butterflies are different. When I first saw one I though it was a broken wing butterfly because have more contracts in one side. But the maxim lose is the same one side and another. I suppose you have explained why a thousand of times. I will follow this...

Hi @tommcginnis You like academic papers and videos, you might like this one. And the others of this serie.

Please you have to read carefully my post. If the initial OI is 0 no one can STC. So you agree with me. A BTO and STO is a +1 in OI. @rb7 said another thing, that and you liked it. Please if you could send me some links to that amount of videos and threads talking about it. Regards

wou , for sure you know more than me about these questions. I really doubt it. Is not possible that a volume of 1 contract leads to a OI of 2. Please , imagine that situation. initial OI = 0 That day there is a participant that BTO a put contract and of course the counterside STO. Thats a...

Well, I don't know. I didn't say that to start a confrontation. I say it because I like him. And he always have been very helpful and respectful with me. Thanks to administrators of the forum that there is not the possibility of giving dislikes, or that could cause a war probably.

By the way, the @JackRab hollydays are very long , dont you think ? oh, come on. hehe

Maybe, I don't know, but this is another question. Virtual contract ? what is this? Oh please someonelse confirm this. In my opinion only one contract is closed. As well as when one side BTO and the other side STO only one contract is created. Why are you saying 2 contracts ? For one...

So if a market maket is selling an option that he doesn't hold, they are not selling to open but are selling to close. Is that right ? That is very difficult to understand. How is he selling to close a position that he doesn't had ? Sorry but I don't think my math is wrong, I am only thinking...

Hi Yes, I know the difference between BTO BTC STO STC. Only when the two sides are opening it makes a new contract. But in my example, the two Market makers were opening a contract, so I don't understand why this new contract would not appear in the OI. Please it is not that I don't trust...

Hi I don't know exactly what you are saying with netted. If the market maker positions are netted at the end of the day, that means that the mm positions doesn't appear in the OI. Imagine a OI = 0 If I buy to open an option to a market maker A , and in the same day I sell it to the market...

Hi Thank you for the response. I must confess is the first time I hear this. Can anyone confirm this? Yes yes, if you close your option and the other side is not the same as the first transaction, the volume will be +2, and the open interest +1, as the contract is still opened. So a volume...