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Why is pin risk meaningless for short atm combo?

Currently RUT May 790 put is quoted at 0.4 x 0.45, but the theta shows 0.49. It is impossible for the time premium to more than 0.45 in one day. Does it mean the option pricing model (theta calculation etc) is not applicable at the expiration week? If the greeks are not applicable, what...

If you are good in statistics and math, you might want to start with options. I believe you have a good understanding of options since you have mentioned two of the best books in options. However being good in math is not enough, you need to understand how the market works. Look at SPX...

She might have said it in her private toilet (i.e. when she shit). LOL. If you listened to her in 2001 and 2002, you finally make money (assuming you bought s&p) as of today! Eventually she will be right.

I have TOS account for trading options. I talked to them some time ago and they didn't have real Level II. How can I get time and sales? Is it free?

No! The platform is good for option trading only, imo. They don't have real Level II, not a good platform for short-term scalping.

A foreigner might set up a Delaware LLC for trading. Since trading profit is not an income, but a capital gain. When you file your LLC tax, specify the amount in the capital gain section (check the K-1 form). Allocate the gain to the partners of the LLC. Do NOT pay yourself any salary...

So we can sell naked calls for future options?! According to IB website, we can only sell cash-secured naked puts, but not naked calls for stock options.

Can we sell naked future options (unlimited risk) with IRA account? Can we use span margin in IRA account?

I think you can do that. You need to file some paperwork to dissolve your entity. Call Fidelity and they will tell you.

Anyone knows if we can sell naked future options such as er2 with IB IRA account?

Depending on how you look at it. Theta is not a pure exponential function of time. Theta has a factor which is an exponential function. Look at the theta formula. Also the bid ask quote is not continuous, so it won't follow a continous function. For example, 5 days before expiration, a...

I know Core 2 Duo supports 64 bits application. Since most of the applications are not 64 bits, does it make any difference between these 2 assuming the same clock rate? I want to retire my current laptop and get a new one for trading purpose. I will use excel with DDE. T2250 (1.73GHz)...

If an order is expired without filled, is there any cancellation charge?

If you don't mind to move further north, try NH, no state income tax.

Look at how many option questions in ET and you'll understand the exp growth in option volume is coming from retail. Don't get me wrong. It is still dominated by institutions, but it is changing. With pm, it changes a lot quicker than you imagine.

Don't really understand the scenerio. Your initial position was a covered call. You covered the call. It was also a "ok" order. You then sold your stock. I don't see any naked option position in the IRA account. [edit] unless you sell the stocks before you cover your call.

Depending on your broker, TOS and IB will allow you to have short naked options because they are covered by cash even in an IRA account.

That might not be true. Their apartments were cheaper. What do you expect? Most builders at that time built with the same or similar quality. Don't say bad thing about a dead person. In US, the quality is even worse.

I will think so. IV comes from supply and demand. pm encourages selling. With so some many books and websites promoting selling premium, there will be an increase in premium sellers. So both IV and vol skew will be affected. However, because many traders don't really understand pm, there...