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  1. M

    Probability and April Put-Spreads

    If you are into that stuff then sure you can use it, however, it doesn't affect the statistical probability, which is derived from a probability distribution.
  2. M

    SPAN margin

    What is the underlying that you are trading? Given the information you have provided my guess is that you trade equity and/or index options, which are Reg T margin in the US.
  3. M

    Can someone explain

    What do you mean by "all those contracts going to individual parties"? Are you asking whether each of those 2000+ contracts was traded by a different person?
  4. M

    Can someone explain

    First of all, market maker's trades are no different from anyone else's, so whether the volume translates into open interest doesn't depend on whether a market maker was on the other side or not. For each trade there are 3 possibilities: 1. Both parties are opening new positions. This...
  5. M

    What's the real risk of a major gap while the market is closed?

    Someone had a sh*tload of short puts expiring ITM so they called in a favor with the Fed. :D ...or was it long calls...can't remember.
  6. M

    can you get the Greeks online for free?

    Sure you can Greeks for free. Just plug in the variables into an option pricing model...
  7. M

    Understanding Futures Options

    Options on futures are basically the same as options on stocks or indices so any options book/site will do.
  8. M

    What's the real risk of a major gap while the market is closed?

    I haven't really read the other answers so I apologize if someone has already pointed this out. SPX is an index and, therefore, it is unlikely to have large gaps. For example, futures may be trading 2-3% lower and the index could still open unchanged because of the way it is calculated (i.e...
  9. M

    Are option prices linked to devidends

    Yes, I am aware of this, but I think for the purpose of this discussion my reply is accurate.
  10. M

    Are option prices linked to devidends

    Dividends are priced into options so there is no free money to be made.
  11. M

    Hedging 101 question

    There is no single best position. Each one has it's pros and cons. You can take some money off the table by rolling up the calls to a higher strike. You can sell a higher strike call, as you suggested, and this would convert the position into a vertical spread. This reduces risk, but the...
  12. M

    buying put options

    For a two-month time frame August is a bit too far out, if you ask me. Going further out in time you reduce time decay, but the downside is less sensitivity to price movement. The further OTM you go the more leverage you get. So the strike really depends on how much leverage you want and what...
  13. M

    buying put options

    You haven't provided enough info to give you a meaningful answer. Are you looking to hedge a long stock position or to speculate on the down move. If looking to speculate then what is your price target, time frame (although you did mention Aug puts)?
  14. M

    Silly question

    2.75 is bid, 3 is ask. Yes, if the option expires ITM, hence automatically exercised you would have to shell out 4800. The system does NOT automatically sells anything. If the option expires OTM then it just expires worthless. Again the system does NOT sell anything.
  15. M

    Silly question

    First of all, the stock only has to be above 48.90 at expiration for you to profit. Prior to expiration you can make money earlier, depending on where the stock is, how much time is left and what happens to volatility. 1. If you hold the contract into expiration with the stock at 50.90 then...
  16. M

    holding a Feb SPX Iron Condor.. What to do

    With SPX at 1332.32 the 1235/1245 call spread is deep ITM and it is already trading at 10. There is nothing left to roll here! All you can do now is hope that the market crashes by Friday.
  17. M

    Variation of collar strategy

    If you set up a collar and then buy extra 100 shares then you defy the purpose of the collar. That is, you have 100 shares, which you would like to protect so you set up a collar and then potentially buy another 100 shares. So you end up with 100 shares protected by the collar and 100 shares...
  18. M

    Restricted from being the bid and offer

    Only market makers are allowed to do that (at least in the US).
  19. M

    Help requested on protecting a long term position from earnings report

    It looks like the stock continued to fall for about 3 weeks after each of the last two reports so if you want protection that goes beyond the initial response to the announcement then you may consider looking at Mar options, otherwise you can go with Feb, which have two series (one expiring on...
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