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you're not quoting spread prices. you're quoting the ask for the long side minus the bid for the short side and vice versa. if you are consistently paying up like this for spreads where both legs have .30 - .80 wide markets -- you are giving up so much edge that you would HAVE to be an...

Um... it is universally true that what you pay for anything is, at the moment of the transaction, higher than the price you can sell it for............As for the itm call spreads, or any call vertical spread for that matter, I have never seen them quoted at a price that exceeds their maximum...

not sure with what exactly you disagree.... let me pose this question. if you must buy a 45/50 call bull spread, and you know in advance that in 60 days the stock will move from, say 45 to 50, would you rather own the spread that expires in 3 months or the one that expires in 1 year (assuming...

watching spreads move on distant option series is like watching paint dry.....keep those babies closer in (< 3 mo) if you want to see them widen. as for how to manage a winner, it's a nice problem to have. one thought is to sell half if you get a double and ride the remainder out for...

to answer the original poster, you can make adjustments after regular time intervals, e.g. every day or every week, or you can adjust after a certain number of deltas are produced. if you desire to be as delta-neutral as you can, more frequent adjustments will have to be made. the other way...

I dont trade that kind of size but there may be liquidity problems if you _need_ to cover 500 short options in a pinch. I would rather be on the wrong side of the market with 50 sticks of stock than 500 options. wee

zero sum and "utility" are not the same thing...........i may be overjoyed to have purchased any insurance premium and have it expire worthless. that has nothing to do with the zero-sum of dollars-at-risk given no other trading or economic activity. scalping against a position introduces more...

btw did you ever hear the joke about the efficient market theory economist walking down the street with his wife? she sees a dollar on the sidewalk and says "look, there's a dollar on the sidewalk." the economist says "no, there can't be a dollar on the sidewalk because someone would have...

ah your second message clarified things for me riskarb. certainly the straddle buyer/seller cannot both profit equally at expiration --with no other activity taking place. in your example one of the parties was "working the straddle" by gamma scalping. no long arguments from me on the...

i hear you, but put aside the economic purpose/value of options and merely consider the zero-sum aspect. in your example the put buyer lost his insurance premium. the put writer banked it. the risks were not symmetrical -- they never are with options -- but the transfer of dollars-at-risk from...

sup guys, i actually think that zero-sum is valid if you consider every position marked to market from one moment to another.....it is true that counter parties can and do hedge themselves, but all that means is that risk is dispersed further down the line. without a doubt, however, a 1...

i think it's a driver-level concern -- try it for sure -- you may get good results by exploiting the cache on the one cpu. be sure to benchmark it though with affinity off and on. if it's not better on, then bag it. recognize, however, that the ideal solution is to use software designed to...

if your NIC is on the PCI bus, you may be asking for trouble since all devices on that bus share interrupts. wee

i think you're not supposed to use cpu affinity for processes that share interrupts. i think you can starve service requests for other processes in that event. check out this info on imagecfg.exe: http://www.jsiinc.com/subh/tip3500/rh3542.htm wee

Caution the guy, sure, but telling him he needs a million bucks to trade options is a bit over-the-top, no? wee

Things like "interest-only" mortgages, etc. Don't worry, if you want the house, they will find a way to finance it for you, courtesy of Easy Al. And Claude Rains, the Invisible Man, er -- Franklin Raines, will buy your mortgage, repackage it into a derivative that no one understands and make...

I think people will have other concerns in 30 or 40 years and not be worried at all about social security. They will wonder why there is no safe food, no clean water, no telephone service, no electricity, no heat, no gasoline, no health care, etc. Little things like that.

i suspect that more than a few of the trades today in IMCL will be broken. that plunge to the halt was too preciptitous. wee

To profit on that backspread, you willl need IMCL to move 20% of its value up or down in 37 days. Good luck. You'll need it. :cool: wee

btw i like none of these trades.....poor r/r across the board. wee