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There is no divergence. In June when it was trading June future, the premium was small. Now it is trading Sep future, the premium is larger. The premium is a function of time difference.

I am a customer of vtrader, but it means nothing in the discussion. I am sorry to say that I still don't see (or haven't used) the benefit of jbo yet. Most of my capital is in TOS, and I am getting a credit rate close to 5%, and a commission rate of 0.75 (all included) per contract. I...

Many of us get credit rate close to 5% from tos

opt, Why would you consider prop if you already got a 2:1 leverage using pm when compared to jbo?

You are right. No retail investors are allowed to short in Chinese markets.

HSI keeps breaking new highs this week. The reason is money flow. Chinese funds can invest in HK market. Policy changes and so the historical correlation doesn't apply anymore.

Anyone has ideas how to start a hedge fund and management company in HK? Any special regulation?

Can anyone give a pm comparison between ib and tos?

It seems to me that pm has a lower margin requirement than haircut. For example, pm is tested with -8/+6% price movement whereas haircut is tested with -10/10% for spx. Pm is tested with -10/+10% price movement for rut and ndx but haircut is tested with -15/+15%. Are there any reasons a JBO...

Thank you all for the suggestions. I have been doing spreads for a year. It seems that the wild set occurs more often than I expected. I tried not to make any unnecessary adjustment in order not to lose extra edge to MMs. It is hard to know what a proper adjustment is.

I got hit again this month and it erased 2/3 of my monthly profit. I had 850/860 RUT credit spread, and decided not to close the spread on Thursday because it was around 13 points away from the short strike. Here is the question if you like to share: Under what conditions will you close...

I once used the formula found in riskmetrics, but found that sometimes it gave a result greater than 1, and so I don't trust the formula anymore. I don't have enough math skill to derive the formula myself. In fact, in the article that I read, it indicated that the results of the formula and...

You can do a monte carlo simulation to find the probability of touching. I used to use POT in my trading, but recently I don't use it anymore.

Please quote your source. If it is true, the crash will be even harder. Once the stock market crashes, they have to sell their apartments. They will have no desire for spending. However the bubble can continue for longer than we expect.

MoneyBall, A good prop firm should have a good risk control system in place. Do you think they will allow you to risk more than your deposit without any control? Usually when you lose more than your deposit, they will close all your positions.

Don, How can you guarantee it? Bright is a LLC and the members can take back their contribution anytime they want. Please tell me how we look at the balance sheet. Even with 10 million from class A owners, I beg it is a lot smaller than the total contribution from class B (traders)...

I would say: 1. sony 2. hp 3. dell 4. acer Dell has the best value (the lowest price for the same spec). Instead of E1405, I will prefer Inspiron 640m. You can get a 640m with 2GB, 9 cell battery for less than $700. Upgrade the processor to the one with 2M cache. One thing...

Cable/dsl is more than enough in HK.

The touching probability is the prob that the spot touches the target at any time including expiration. It is higher than the prob of expiring. [edit] Since you want to exit your position when the spot touches a certain value, you should use the touching probability.

The probability is not quite right. Since you close the ATM option when the price is 1.25, you should use the touching probability. Whenever you change your exit method, the probability changes. Thats why risk management (exit strategy) is the key for option trading.