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Another sttrategy: http://www.elitetrader.com/vb/showthread.php?s=&threadid=76421&highlight=early+assignment+box* " You're right, I think I misunderstood, and box conversions definitely look useful. I suppose you're essentially choosing between assignment risk and pin risk when...

Here is another quote from a web site: " What to do if you're assigned early on a short option in a multi-leg strategy Early assignment on a short option in a multi-leg strategy can really pull a leg out from under your play. If this happens, there’s no hard-and-fast rule on what to...

Here is one of the Many possible strategies: http://en.wikipedia.org/wiki/Exercise_%28options%29 " Early Exercise Strategy A common strategy among professional option traders is to sell large quantities of in-the-money calls just prior to an ex-dividend date. Quite often...

Perhaps applying the following principles would be useful: http://en.wikipedia.org/wiki/Risk_management "Risk Options Risk mitigation measures are usually formulated according to one or more of the following major risk options, which are: 1. Design a new business process with...

Currently for 6E (EUR/USD) Dec10 Futures at 1.3410/1.3411, with the following Oct10 Call Options: 1.320 Call 0.02680 0.02750 1.315 Call 0.03060 0.05030 1.310 Call 0.03410 0.04630 1.305 Call 0.02240 0.05030 How to make any quick profit from the prices? Any ideas?

http://www.elitetrader.com/vb/showthread.php?s=&threadid=87573&perpage=40&pagenumber=3

There is No any "Perfect Option position" without (un)hidden risks as one wished/ expected! "Ask not what your options can do for you, but what you can do with your options." --- OddTrader

I'm very new and inexperienced in writing (futures) options. Feeling not exactly sure how the dynamics and complexity work. Also worried about the risks of how to determine whether I'm in danger of being assigned. 1. What have been your personal experences about advantages and disadvantages...

http://www.elitetrader.com/vb/showthread.php?s=&threadid=125461 : So often we can read so many times on ET people asking and saying about "risking a loss of max 1% of risk capital per trade." However, we still don't know how much (% of risk capital) should be deployed/used in order to...

Hello folks How much risk capital should one use in a single trade? Should it be 5%,10%, 25%, 50%, 75% or even 100% from the risk capital? What do you think? I thing that the market is so predictable (however still with certain uncertainty), that one mustn't risk less than 50%. This...

http://en.wikipedia.org/wiki/Currency_overlay "Currency overlay is a financial trading strategy or method conducted by specialist firms who manage the currency exposures of large clients, typically institutions such as pension funds, endowments and corporate entities. Typically the...

Option Trading and Individual Investor Performance http://arno.unimaas.nl/show.cgi?fid=15657 "We find that option traders incur much larger losses on their investments than equity traders. The gross return difference between these two groups of investors equals more than 1% a month, after...

Thanks! Much appreciated.

Thanks for your helpful feedback. Do you think I (hypothetically) would get short the same Dec10 futures (at the strike price then marked to market) in case for early assignment?

Please excuse my silly questions below: http://www.cmegroup.com/trading/fx/g10/euro-fx_product_calendar_options.html#prodType=undefined For the EUR/USD options on futures, there are Oct2010, Nov2010 and Dec2010 contracts. However for the EUR/USD futures, only Sep2010 and Dec2010...

Certainly, That is correct!

In the context of trading, whether a price movement be Probabilistic or Deterministic, that's a question? http://en.wikipedia.org/wiki/Pin_risk_%28options%29 " Pin risk occurs when the underlier of an option contract settles close to the option's strike value at expiration. In this...

That is: Complexity! :) http://en.wikipedia.org/wiki/Complexity " Some definitions key on the question of the probability of encountering a given condition of a system once characteristics of the system are specified. Warren Weaver has posited that the complexity of a particular system...

Believe not not (since nothing is absolutely deterministic or absolutely probabilistic): Deterministic=Probabilistic. :) The real world is Deterministic+Probabilistic!

Just my guess (about stalemate agreement): most likely Yes - sometimes, but not always!