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How is trading vol on micros, pre-mkt, going to help the guy? NQ was still trading when the news hit and they traded 80-90 lower, but no idea where it will open. My guess is 100-120 below the NDX cash close.

You wouldn't, but a synthetic long call would be short a put at 20-strike, long a call at 20-strike, long a put at 19-strike. You'd be long the synthetic 19C.

BTCUSD is trading where it was when the S&P news hit the wires.

No, he's got a an additional day of lost decay. You really think futures are going to open higher on Sunday?

You would have to sell a call before IBTWS liquidates. You're short a 20 lot? Not to scare you, but there was a lot of optimism associated with the possible S&P addition. I don't think it will open above 380, but the vol is still stupid high, so I'd try to sell a synthetic straddle at say the...

Wait, IB let you short them naked? So you obviously have enough cash to hold the shares w/o receiving a call on Monday. C'mon man, give us the particulars. How can we railbird a blowup if we don't know how much you stand to lose? And guys--don't tell him he should have spread it off. Shares...

How bad? My guess is that the guy shorted 50 of them at 0.3 for $1,500 in premo. He's not freaked out from a one lot. 90% of naked put sellers do not have the capital to take possession of the shares. It's why BDs like IB will automatically buy them back at mkt 15 minutes before the close if you...

100% you own shares from 405. Number of shares equal to the put qty *100. Guaranteed. How many did you short? How many puts?

This is the second moronic thread he's opened this week in the options forum. The first was asking about weekly options that didn't exist when 9/11 transpired.

He's in a vertical. Short put at 3480, long put at 3500. You cannot compare an equidistant (from share price) DITM call vertical against a DITM put vertical. There is no arbitrage to prevent those equidistant ("cash" moneyness) spreads to trade at equal volatilities. We refer to this...

Go to whatever front end you use and plot the payoff of a long ATM call and then compare the payoff to that of the same strike long ATM put + long 100 shares.

To elaborate; buying 100 shares (while holding the 50P) results in a synthetic 50C. 1. You gotta want to buy the 50C instead of another strike, but a., it's equivalent to the natural 50C in all ways and b., the stock purchase will involve less edge loss than covering the 50P and buying the...

You're confusing replication with conversion. This is an OOM easier to follow and there are no maths involved.

The conversion market pre-dates listed options. You can make a call(put) a put(call) with shares. An example. You're long the XYZ 50P. XYZ has dropped and you're now bullish. You have a choice--you can cover your profitable put and buy a call, or you can buy 100 shares which results in you...

For 30-minutes you can use ATR (essentially HV) or ATMIV. IV will price in event-risk.

100% bullshit. They may have led you to believe it, but this is laughable.

Unpossible to tell bc well, Italian.

I don't trade a lot of D1 beyond hedging, but work your lookback based upon your expected holding period. I was short on the # of stocks that were closing under their open (on an up day) and forecasting resolution within three days. Obviously you would have covered prematurely as the ATR...

Wow, I missed the reference entirely. RM was referring to my comments about delta1. Extrapolating VIX targets isn't going to work due to how it's weighted, so you could apply an ATM implied vol in lieu of using stat-vol. And yeah, you should have a stat-vol target on spot. Just as there are...

Back to the Guff, Bro!