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Assume you double your money, that's $100 profit. If $100 is a big deal for your account then that's bad risk management and you're gonna blow up sooner rather than later. On the other hand, if $100 is peanuts for your account then this trade has no point at all. Totally worthless, plain...

so what!? You didn't need any special skill to buy at the ask.

Yes, you're right those options are adjusted ones. Go to the link below to read the adjustment note (you just type in the stock symbol in the search box and it will give you the adjustment notes that explain the deal): www.cboe.com/tradtool/contracts.aspx Once again, the only reason those...

Are you talking about adjusted options!? Those options become non-standard ones (not 100 shares per contract) due to corporate actions, such as mergers and takeovers. The contracts are adjusted according to the terms of the deal.

:D

Why would you do that? Are you assuming market makers have mispriced options!?

Just out of curiosity, why 3D risk graphs? What do 3D have what 2D don't!?

Congrats ET!

Because the indices are composed of mining stocks and mining stocks don't follow gold perfectly. GLD is the only one that tracks gold to the point as it is an ETF that invests in physical gold and represents 1/10th the price of spot gold.

In other words, the standard deviation increases proportionately to the square root of time.:)

Volatility is usually expressed as annual percentage, i.e. standard deviation, and to annualize standard deviation you need to multiply it by the square root of time. So if you calculate standard deviation over the past 20 days then you need to multiply that number by the sqrt(252/20).

I find that green tea leaves work best. Although coffee beans do a good job as well.:D

There is a theory that the stock will always gravitate towards the strike with the highest Open Interest at expiry, so that as many options expire worthless as possible and thus causing pain. This theory is called "Max Pain" Theory. You can google it, there's plenty of info on it. Personally...

I didn't say you should move, I just pointed out that IB is not the only one routing orders to BOX.

Your order was most likely routed to Boston Options Exchange (BOX), which offers price improvement (PIP) for orders submitted at market quote. Visit BOX website and read up on PIP.

Don't kid yourself, IB is not the only one that uses BOX for price improvement.

Money may not make you happy, but try living without any for a while.....

For what it's worth, I agree, a long butterfly is a great position, I just love trading them. In fact, it offers one of the best risk/reward ratios, especially, if you play OTM flies. The problem with them is that you can't reach the max potential profit until actual expiry. For example, I...

Interesting. Very informative! Thank you all for your contribution! Good trading!

Hmm, 58 views and only one answer.....Either no one actually knows the reason or the ones that do don't wanna disclose it....I knew it....it that car deal!:D