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There is nothing to like about those odds, because you get exactly what you pay for. In the long run spreads costing 75% of their strike distance will on average end up on the 75% point between the strikes. Sometimes higher sometimes lower. Sometimes the market overestimates IV and you payed to...

I think what MTE meant that it is not possible to conclude that the strategy works based on 1 year of experience. It's not clear which part of the account you invest in buying these spreads, but be aware that the possible max loss is the full payed price for the spread. And that will happen one...

Look for older posts by Riskarb. He did/does quite a lot with them, some very shrewd hedging through other instruments eg. with normal, (he calls them vanilla) options. Sadly Riskarb is not able to post here anymore. He has his own forum now. Ursa..

I wonder what your 'investors' would do if they knew you asked such dumb questions here. Ursa..

I think this was announced at the time Google surprised everyone with the desktop search thingy that suddenly made things a lot easier. Ppl gasped, why wasn't this available before? As usual no actual innovations come from M$ at all. And when some other bright company comes up with a novelty...

Hmmm, interesting. But I think the comparison should be between margins for a call-calendar and a straddle-calendar. The margin requirements for both should be far less than those for the single-month parts of the strategies. Ursa..

Not sure if that is the strategy. In any case, if the IV is bloated you expect it to deflate some time soon. The backmonth contracts have a far bigger vega (IV sensitivity) then the front months. So deflation of the IV bubble will benefit the short calendar (as does a big sideways move). But...

Yes, we will too, for several years at least. In the meantime our Linux fleet will get more attention (didn't need any these years) and maybe a serious look at Mac. I think we won't make it to Vista.... Ursa..

In this case it means we only need 1 or 2 resellers who will distribute systems with XP on them. They will get our business (and others's too, I'm sure). Who would want this game-box anyway. I truely don't see any advantages for business users to upgrade. They will have to replace the...

That's too bad then. In our case here it means these two will not be doing business here. If we want new systems it will be our choice which OS or there is no sale. Ursa..

In general I agree, but a balanced short position is always prone to some IV damagae when the market moves. The position is not a losing one perse. Take these events into account and keep the position balanced and wait for IV to become acceptable again. Ursa..

No, I think he meant your first interpretation. It is interesting to see how both parties have a skewed view on the other side, in a sense completely opposite to reality. For me it IS new that the locals have a daily P&L accounting as their measuring stick, which also means that they're...

Just like you, repeat and repeat, anything you hear on FOX. Here's a fine man who maybe is able to pull your country from this incredible mess and he is already bashed to death by the non-thinking herds. I know the ones that are scared here. If the next prez is a dem then all the mess will...

That is when Pavarotti moves to the right and the whole stage starts tilting. Sorry, Usra..

Because at the end-points, either move up or move down, both options will trade at about the same value. All theta has gone out of them and your long option will suffuce to buy back the short one. You received a credit at open so that's a profit :). Ursa..

Thanks for telling us, but that was very clear already. Just reduce the intake with 1 bottle a day and you'll be fine in a month or two, Ursa..

Yes, I agree. I would consider the (paper) loss due to increase in IV not a real loss, but rather a deposit. Look at what the position would be worth under 'normal' IV, eg. the IV before he started trading around the move. The difference will tell you how much money is soaked in currently by...

Dunno if that wins any hearts and minds overthere. Too late already I guess.... Ursa..

Dear Porge, I don't think you are aware of this fact, but by your ranting you will cause a lot of readers to switch party next time, to the Left ie. This madman's sputtering is not something somebody wants to be identified with. But please, continue..... Ursa..

You're hijacking thread about a different subject. Maybe start a new one. :) Interesting example. Shortly and schematically, you assumption is correct: the complete position should equal out. You own +pMAR-cMAR which is a synthtic short and +cFEB-pFEB which is a synthetic short. The...