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I'm familiar with the 'mean reversion' as it applies to volatility. In my limited investment experience, I fail to see how this concept can be applied to the underlying assets. Theoretically, assets have no ceiling, however volatility does. Is it your contention that stocks(sectors, indexes)...

Another important concept to understand is implied volatility for your 'strategy'. option prices are sensitive to changes in implied volatility. The higher the volatility, the higher the expected range for the stock, therefore the higher the price will be for the option. It is common...

I have roughly 4 calendars and 2 IC's on per month, and I am the exact same way. My spx ic is giving me heartburn at the moment, but my CME ic is giving me an ulcer. Whereas my calendars are curently getting better yields than otm credit spreads. Oh well, gotta mix it up.

Good luck to you, it sounds like a gem of an opportunity. Keep us posted!

Enjoy my friends. http://www.worth1000.com/entries/230000/230200UBDA_w.jpg

I understand dividends 101, nothing in that verbose post was anything new to me. I'm talking about a reverse conversion whereby one takes a short position in the SSF, and simultaneously takes a synthetic long position in the underlying(long call+short put). As long as you carry this position...

So Don, To arb the dividend you could just box(reversal) it with a SSF? ie. synthetic long underlying(long call + short put) and simultaneously sell the SSF short, and capture the dividend since SSF's don't pay the dividend? What am I missing?

I agree with Mizer. Are u currently employed? If not, I would jump at the opportunity. Beggars can't be choosers bro.

I trade options only. Most of my plays have a 68%-75% chance of success. Most of the time the risk:reward is 4:1, although adjustments are used so that full 4 is never all lost. When conditions are optimal, the r:r can be closer to 1.5:1 with a 75%-85% success rate(admitedly those are tough...

Mo, what up brah? where ya been?long time no see. good to see you.

EXQ

Do you spread it, or sell naked? I'm not capitalized enough to naked sell, yet. Sounds like a good strategy.

:eek: :eek: :eek: :eek: :eek: :eek: Is this thing ever gonna stop going up? I deserve to lose anyway, I breached two of my guidelines. 1. Avoid trending stock 2. wait 24 hours to initiate new spread after short strike is breached. i am praying to the consolidation gods now.

CME....... Oh boy, someone kill me now.:( That's alright, adjustment time. I bot back my IC for a loss, and put on a new APR 440/450p500/510c IC at a 200% greater size. Am i a lunatic?...time will tell

Wow. Thanks so much for your information. Very thorough indeed. Gracias!:)

I don't have a futures broker, nor do I want one. Optionpro007, can I score some long May CGM6 600 straddles from you? I'll pay $34.00 per spread, whaddya say? :D

What equity product could I trade that follows spot gold the closest? $XAU didn't do it for me. GLD doesn't have options listed on them. This product needs to have liquid options on them also. Thanks in advance.

Email the CBOE and request that they list them. I think they are happy to accomodate if there is any interest. There are a few conditions that need to be met before they list options. There needs to be a certain amount of liquidity, (X shares traded annually), and insiders can't hold more...

I think one other thing to keep in mind is that VIX options are priced based on the VIX futures contract and NOT the VIX index. The future will expire at the vix index price, but the further out until expiration, the future typically trades at a significant premium to the spot vix. for...

I know nothing about what the equity index policy stipulates, and may or may not hold terrorism clauses in that contract. I was referring to liability policies in general. Our esteemed poster indicated that the Oracle of Omaha is a fear monger and hikes mom and pop's liability premiums due to...