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Coach, I am trying to increase my leverage by adding a long leg ( I used to do naked write ) to increase my leverage. My long leg is not used for protection as I will never let the price goes below my short without doing anything. Currently, SPX Aug 1130 3.4 x 4.2 SPX Aug 1110...

Chris, thanks for your response. Will I increase my leverage further by adding a ES long leg( to make it a credit spread)? I really don't know how span margin works for credit spread.

I also have OIH calls with: short OIH Aug 160 Call short OIH Aug 170 Call short OIH Aug 175 call, long OIH Oct 170 Call short OIH Oct 175 Call long OIH Oct 180 short OIH Oct 190 and naked puts: OIH Jul 120 Put OIH Jul 125 Put OIH Aug 120 Put

Is the margin requirement for credit spread using es the same as that using spx? margin req = strike diff * multiplier - credit? I heard future options offer higher leverage. So I think the answer to my own question is no, but I've seen Coach using it to calculate ROM. I have been...

Thanks, Jeff. I haven't yet traded future options. I have traded mainly spider, iwm (most etfs), and like to consider trading future options. I couldn't find any free span calculators ( or formula ). Will trading future options give you better ROI? How much better?

What is the margin requirement for Aug 1125? My broker didn't allow me to trade even 1 contract with 30000 Option Buying Power. My calculation showed the margin should be less than 20000.

Genesis is offering 1 dollar a trade for retail customers.

You need to be licensed to trade prop (i.e. to trade firm's money) Series 7 is the exam you need to pass.

Dave, We worked together before in Assent. How u doing? Why don't you talk to swifttrade.com? They have very low-cost structure as well. I believe their per-trade commission is less than $1, a lot lower than genesis. In addition, you don't need to find traders with series 7.

the website shows USD 1.65 (through 12/31/06). Does it mean $1.65 only applies to trades before 12/31/06, or it applies to accounts opened before 12/31/06? What is the rate after that?

It seems to me that the unbundled rate is always lower than the bundled rate even for small volume. One contract for unbundled rate is only 0.9 (exectution fee) + 0.3 (clearing fee) + 0.1 (carrying fee) = 1.3, and the closing position is 1.2 ( w/o carrying fee). So the rt is only 2.5. Am I...

Which firms are good for trading es future options?

MTE, I never traded future, nor future options. I start looking into the possibility of trading future options b/c of higher leverage. My question might be very naive. I just wonder how most traders switch from index option to future option, and how do they compute volatility. Do you...

I wonder if there is any professional future option trader who uses the BS model to determine fair value of index future option price? How do you (or your research team) calculate the historical volatility of index future? Do you just use volatility of the underlying index?

First, I read a lot of academic books (e.g. Future, Options & Swaps from Robert Kolb) that Beta of index future is greater than 1. Second, the fair future value is F = S Exp(rt). It seems that volatility of F should be related to the volatility of S by the same factor ( exp(rt) ). However...

I think we can. I believe the index future volatility should be: = sigma * exp(rt) based on the theoretical value of future price. I just want someone to verify it.

I want historical volatility of index future. Say for example, to compute s&p dec future volatility, you need a set of dec future price, but unlike the near-term future, they are not actively traded, and i don't think it gives you a good estimate of the volatility of the index future when it is...

Is there a way to compute the volatility of index future based on the underlying index? Is there a website to find the historical volatility of index future?

I only pay 3.75 for 5 option contracts.

Don't u know that you can negotiate the commission rate? :) I don't have minimum, and I am paying 0.75 per contract without paying any other fees.