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Why not buy the stock? AAPL has earnings next week which is the reason why the premiums are so high. I can tell you like to sell otm option (from previous post) I just don't see how that is a profitable strategy in the long run if you use leverage. But if you think the market will rally BUY the...

Hey everyone I thought I would make a whole thread dedicated to the butterfly spread! I have some questions and what better way to learn than by asking the shmucks on ET!!!!;) I currently have a butterfly a 121 butterfly on spx 2590,2640,2690. EXP 27 April. Purchesed for 18.88, currently...

Why didn't you buy a wide butterfly then and delta hedge? The risk reward is much better and you sell all that expensive Vega you are talking about.

Whats your reasoning for this trade? How profitable is this trade in the long run? selling this condor because its super wide does not support a good trade. Since you think stat vol will be low over the course of this trade ("BABA won't move 20% in 3 months"), do you have an exit strategy when...

Also as you have mentioned in another post, I will not be using the implied vol to calculate my greeks (implied vol overstates the move into earnings) but rather use GARCH. If I make money on this trade (small because I am still testing the gamma scalping waters) I owe you a beer.

I have a trade on right now that you could be interested in. I bought LYB straddle right before the close on friday with the idea to scalp into earnings. It has earnings out this Friday and vol usually gets into the range of 83%-95% the day before earnings. I will do what you are saying and...

I can not see where the edge is in hedging EOD rather than x amount of delta.

IB was quoting me 8.9 on the call and 9.4 on the put. Sorry for some reason didn't see the rest of your post. Thank you for posting. I appreciate the time taken.

Whoops silly me. If you look at the line I took, do you see a major flaw here or is that the standard path? I closed the trade because one of my option legs were almost at 1 delta. I believe it was the right decision to close it off because my gamma was approaching near 0. Thoughts?

when I bot the contract it was 5 days to expiration. vol per day = 9.2*sqrt(5/365) = 1.07. <- that would be my daily expected vol right? 1.07% How did you get .5%?

APRIL 18 spot 2709 APRIL 18. BOT 1 SPX 2710 APRIL 23rd straddle for 26.80 APRIL 19 10 am BOT 250 SPY @ 269.19 (hedge short deltas) APRIL 19 11:15 am BOT 250 SPY @ 268.74 APRIL 19 1:28 pm BOT 250 SPY @ 267.86 Going into Friday I only had 25 deltas left on the downside. APRIL 20 SPOT moves down...

Thanks truetype I just connected with him on Linkdin, will send him a message and if my schedule permits I'll visit him in Chicago, only 6 hour drive for me (Toronto). Do you personally have any of your funds in automated trading? Pros and Cons between discrete and systematic?

When I see a question I can answer, I answer it. If you can help me, then I eventually will help someone who asks the same question that I did. Whats wrong with you anti social people. If you don't want to answer my question don't answer it. But I am currently learning alot from this thread and...

It seems the best way to go is use IB's java API, however, I am an economist at heart and believe Java wont suit my needs as it is a pure programming language. My strategy in the smallest nutshell, will be, gamma scalping a straddle into earnings. I will need to be able to price an option using...

Do you have any experience trading with R on IB? If yes, any tips you could throw my way as I go on my automated trading journey?

??? I wouldn't be waiting for an answer if I could just GOOGLE it. There is very little documentation on this. 1 video that is semi useful. Clearly you know of many more resources..... Also talking and interacting with a community is much more effective then reading an article.

Lots of articles and youtube videos out there that will explain all your questions. These are very basic. But you can sell an option whenever you want. However options are not linear. Just because the stock moves does not mean the option will move by the same amount.

Hey everyone, I am an avid R user and want to start automated trading using the connection between Interactive brokers API and R. IB has a great IBrokers package on R but I am not to sure how I would automate the trade. Can someone point me in the right direction on where to learn how to set...

Almost all market makers these days are algorithms. In liquid markets they take fractions of pennies from each order. If you ever fill an order through Interactive broker smart router, you will notice you bought/sold an asset at $3.4574. In illiquid markets, market makers expand the bid and ask...

Did I stutter?