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I agree with that. Closet Bolshevik. (But I digress) The option market as we know it today has been around since 1975 and had little to do with what is under consideration for what is being touted as reform.

Most of the above replies are correct. However I would like to add/clarify. 1) It's very rare that any ITM option is allowed to expire. Even without the auto-exercise. I have had covered short position assigned when ITM .05 when auto-ex was only required at 75 cents. 2) I get...

I would ask that one read the question! Most option pricing models that I have found use the HV in the calculations for the Greeks, I personally would prefer to use the IV. All I want to know was what others would prefer. Thats it end of question.

I was not asking for trading tips. All I was asking was for a those that use the Greeks for what ever... WHAT is your preference. HV or IV. Its that simple, period.

At least one person answered.

Yes Market prices are meaningful, and my positions are marked-to-market every busines day by the broker. So.....that relates to my question......how...?

Example: DuPont de Nemours (DD) Historical Volatility is 32.50% The Implied Volatility on the July ATM 38s is 18.94% Two distinct values. So the question: What is YOUR preference for the input to calculate the rest of the Greeks, Historical Volatility, or Implied Volatility.

I would like to get a consensus on calculating the Greeks. Delta, Gamma, Vega, Theta, and Rho all use Volatility as a variable in the formula. The question is: What are your preferences, input Historical Volatility, or Implied Volatility?

I'm sure OH is not alone in their changes to the margin requirements on leveraged ETFs. Regulatory Notice 09-53 Effective Date: December 1, 2009 Executive Summary Effective December 1, 2009, FINRA is implementing increased customer margin requirements for leveraged ETFs and uncovered...

A synthetic call involves Long Stock & Long Put, so I'll assume you meant Synthetic Long, Long Calls and short Puts. Using the 85 calls and the 75 put would be a Synthetic Long with split strikes. Using the same prices this position would have a breakeven point of 88.13 compared to 82.62...

My expectations for the underlying is for it to trade above 85. The credit put side expires worthless and both calls are ITM and maximum profit is achieved. The Historical Volatility for RIG is: 2 month 10.72%, 3 month 14.37%, 6 month 20.97%, 9 month 26.79%, 12 month 34.00%. The...

I don't know of a spreadsheet that does exactly what you want. But I could make one easily.

According to the headlines "Chevron is making a big push in the Gulf of Mexico" with a high-tech drillship to find oil 6 miles below and costing $1 million per day. The rig called the Discoverer Inspiration is owned by drilling contractor Transocean LTD (RIG). However I have made many plays...

May Options Bid/Ask Prices from 04/09/10

i understand exactly what you are saying and agree, but same as above this is a pharma stock waiting for big news that will likely come in may, a 50-100% gap up is quite possible. Old saying in the market. "Buy the rumor......sell the news." I hope it works out for you!

What you have is basically a butterfly spread, a neutral strategy for a credit. The additional long 50 call, a very bullish position, results in only reducing the credit and narrows the breakeven points up or down on the underlying for the neutral part of the strategy. Your own breakeven...

I would call it a Put Backspread and Long Stock

they read, but do they comprehend?

1) My reason for providing the calculation was to illustrate the two methods available and the potential problems with both. 2) Again I am not asking what the effect is, I'm asking for a preference. If one was to get, and use an option pricing model , would one want an input for dividends...

Perhaps I didn't phrase the question correctly. I was not asking what the effect approaching dividends have on the option price, but how important dividends, and more to the point what the consensus is on just how should, if at all, dividends be factored into the option pricing model...