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Thank you for your insight! I find this incredibly valuable. :-) How do you dynamically hedge this position? Let's say you've sold these 100 calls at a great premium and bought 5k shares and the stock rallies hard. At what delta do you make an adjustment? Do you simply buy more shares or...

I don't like it retesting the low. I took a .50 loss on the big blowout day a few days back so I may just be overly pessimistic. The cash market isn't doing much, and seasonally, not much happens with CT for a few months. But that's just one opinion...

I think it does not exist (but I'd be happy to be wrong). DTN's ProphetX is a pretty good futures platform, but does not have integrated trading, as far as I know. If you're looking to do pit futures options, you're probably going to be disappointed. I've tried several. You can see my rant...

Exactly right. Some charting software will allow you to change the IV, but otherwise, it will imply it from the current bid/ask.

Nonsense! You spent every day doing something that is extremely difficult to find reference material on and very interesting to me. I own "Option Market Making" which sounds useful, but mostly seems vague and "secretive". So, let's say someone bought 100 calls from you. How did you hedge...

I find Optionetic's free futures historical IV stuff hugely valuable: http://platinum.optionetics.com/oafutures.html I know Optionetics offers historical IV on equities with their pay service. Tradestation and IB both offer historical IV for equities as part of their brokerage services...

That is the sole value of the Black-Scholes formula--at expiration, the option's value is readily computed. At expiration, a stock is at $7, the option is a $5 call. Option's worth is $2. A week before expiration, things are dependent on probabilities.

It's your $5.70 Considering CME just covered the distance from 498 to 513 in one day, the odds of it sticking in this range for the next 30 days seems pretty low. Keep in mind there's a dividend in about 3 weeks.

According to a 19b from PHLX with the SEC: "the Exchange adopted a cancellation fee of $1.10 per cancellation order to be assessed on member organizations for each cancelled AUTOM-delivered order in excess of the number of orders executed on the Exchange by that member organization in a given...

Yes. http://www.interactivebrokers.com/en/accounts/fees/otherFees.php?ib_entity=llc#cancel At PHLX, for example, you are charged $1.10 for a cancelled order. You get a credit of $.10 for every filled contract. So, if you cancel and replace an order for 5 contracts, you'd owe $.60 in...

... or down ... or slowly upwards ... or loses volatility ... or pays a dividend ... or interest rates go down If none of those things happen, then just buying calls will make you money! So far this year, I have traded over 1100 purely options positions. Long only positions: I win...

Good grief, it's the second link on Google. http://www.nfa.futures.org/compliance/issues_fcm_ib.asp

The aftermarket on the ECNs is hugely active. Millions of shares will trade in seconds. The "gap" you see on a daily chart was generally filled with active trading before or after hours.

Tos charges $1.50-$2.95 per option. IB charges $.75 per option. IB charges a cancellation fee of $1.20 unless you get some number more fills than cancels. That being said, cancellation fees stink, but it's not IB that's charging them, it's BOX, PHLX, AMEX, CBOE, and the rest. IB is largely...

Sure, at that point, it's "free money", and as soon as dividend hits, the stock is going to drop anyway. It's unlikely someone would hang onto a short term near-money call through div-ex unless they just weren't paying attention. :-)

I'm not Maverick, but I can play "Anyone" on TV. Trading an options book means carrying multiple strikes and multiple expirations and managing your overall position. Floor traders may be buying or selling any strike of any expiration at any time. How do they hedge their overall risk and...

Once CVX is above 69.48, assignment is very likely.

Options are priced on the futures, not the cash market. Nov expiration is a SERIAL option expiration of the December futures contract. Whatever the Dec ES contract is on Nov expiration is what the Nov options will settle at. Serials can get pretty complicated. In Eurodollars, for example...

I've written options on all of these at one time or another. The biggest positive for ER2 is the IV--somewhere around 25-30%. ZN and ZB have had their IVs completely crushed. 6% is crazy low, particularly when bonds are having the relatively frequent single-day 1% true range lately. ER2's IV...

What does this mean? Does that translate to "Not IB, isn't it?" which really doesn't make much sense? Do you use "dag nab it" frequently in your writings? Besides, it was me who bought the PFE options. I had to ask myself "Deal or no Deal" 90 times.