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The margin manual from CBOE margin requirement The greater of these values for Broad Based Index: 100% option proceeds + 15% Underlying market value, less Out-of-the-Money if any. or 100% Option proceeds + 10% Underlying market value or Puts Exercise price. I can't speak for...

Excel VBA IV Function. Function ImpliedCallVolatility(UnderlyingPrice, ExercisePrice, Time, Interest, Target, Dividend) High = 5 Low = 0 Do While (High - Low) > 0.0001 If CallOption(UnderlyingPrice, ExercisePrice, Time, Interest, (High + Low) / 2, Dividend) > Target Then High = (High +...

Wrong!!! Option price is primarily determined buy the price of the underlying. Volatility if one uses the VIX is about the same as it was 2 week ago with a spike up in the middle. The VIX is up over the last 30 days.

Buying calls is not a stupid way of being long. However, being long calls ATM or OTM would be more speculative then ITM or Deep ITM. The deep ITM call will have very little Time Value thus little time value decay. For me If I bullish on a stock and feel the long call is justified I put...

Stock listed in the Sub-Industry as Semiconductor Stocks ACTL, ACTS, AATI, AMD, ASX, ALSC, AOSL, ALTR, ANAD, ADI, AMCC, ARMH, ASTTY, APIT, ATHR, ATML, AUTH, AVGO, BRCM, CAVM, CEVA, IMOS, CRUS, CNXT, CREE, CY, DIOD, DPAC, DSPG, ENTR, EXAR, EZCH, FCS, GSIT, HIMX, HITT, IKAN, IFNNY, IDTI, ISSI...

Naked options would be concidered high risk. As long as one knows and understands the risk. What may be too high a risk trade for one , may be perfectly acceptable for another. For me... I rarely do naked options. The program I use to calculate option strategies with the price of...

First my background: I have worked in the industry for almost 30 years. As a broker, as a Sr. Reg. Options Principal/Supervisor. I have held many compliance positions. I've worked on the trading desk. I've worked in the margin dept and was responsible for making decisions as to when and...

The legality of Crossing an order depends on the position the firm in acting in the transaction. As an Agent or Principal. In a Agency trade the broker is simply acting as an agent in the transaction. When the firm is acting as Principle the buy or sell is accommodated through the firms...

As you described it something is very wrong!!! Long the 119 puts, short the 114 puts. This would be a PUT debit spread. The total risk is the debit. If the market rises both options expire and you lose the debit paid. The fall in the market is a move in favor of the position. The...

That is true. The Price at that moment in time. The option rarely trades at the stocks HV so the "theoretical model" calculates the IV. All the values produced are based on "theoretical" option pricing models. The IV today is rarely the IV tomorrow. The Delta is rarely the true...

Finally someone stated the real bottom line. "The market price" as the final word. All the rest of the Greeks, and IV this, and Theta vs. that are all theoretical. One thing I've noted in the last 30 years of trading is, in bull markets the calls trade higher, in bear market the puts...

At last we have heard from the all knowing and informed that All these threads are ridiculous. So RHO is the only real risk. And to think..... All this time I was trading based on my expectations for the Underlying....

When I calculate the marging requirement, there's a big differance. What numbers did you use?

"Limited Risk in shorting" (The Premium) ???? I don't think so!!

I'd say that looks like a reasonable trade to me. If ADI moves up sharply, the max profit would be about 30 to 35% based on the capital (option margin) requirement. The underlying looks to have had support @ 29

I was not seeking admiration or advice. I was merely sharing what I believe to be a conservative strategy.

I think the best book on options is: "Options as a Strategic Investment" by Laweence G. McMillan

I should of bot IBM at 12.50 in '93 but I didn't(Post splits) If all I do is collect dividends and premium for a while I'm fine with that.

Buy HNZ @ 46.50 SCO Sept 47s @ 1.50 Prices at the natural as of 04/20/2010 3.06% dividend. Sub-Industry: Packaged Food & Meats Objective is to augment dividend income, but if it gets called that's ok too.

Looks more like a short Iron Butterfly to me.