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The "exercise style" is what you need to know. "American" style exercise means you, the buyer of the option, can exercise anytime. "European" style exercise means you can only exercise on the last trading day. The ones you mentioned (see below) are all american style. E-Mini S&P 500...

John C Hull

I watched the SC debate. Trump, Romney, Bachmann, Gingrich didn't even bother to show up. Pawlenty doesn't seem to have any new ideas and lacks charisma. Ron Paul knows he can't win but I respect the simplicity and purity of his libertarian politics. Rick Santorum is a moral ideologue and a...

BIN LADEN IS DEAD

Whatever new friction Obumble introduces to the oil market: higher margins or taxes -- it will simply cause oil to be traded elsewhere.

http://blogs.wsj.com/marketbeat/2011/04/14/rip-joseph-battipaglia-popular-wall-street-strategist/ yes, apparently he did have a fatal heart attack.

thanks for the link. still no details on the cause of death released.

Saw a brief flash on the tube that JB passed away. Born 1955, so he was a relatively young man. Anyone know what happened?

ha, i must be ready for the home. i was thinking expiration not ex-dividend. anyone see my teeth?

the days of "forgeting to exercise" are long over. if the calls are itm by 0.01 or more, they will be exercised/assigned.

when your short calls trade at or below parity, assume exercise is imminent. that's it.

Why did you let that run 12+ points against you? Take the loss and move on.

A known dividend will already be priced into the options, so the price of a call won't drop by the amount of the dividend on the ex-date -- it will already be discounted. There is no risk-free way to capture a dividend.

1 point stops on ES? Your broker must love you.

The trades that get multiple term treatment (60/40) are reported on Form 6781. http://www.irs.gov/pub/irs-pdf/f6781.pdf You don't need to itemize all the trades. Just report the aggregate gain/loss on that form, one line per broker, and follow instructions. There are several tax...

if the stock is not on their box list, your itm naked calls will fail-to-deliver immediately and you will buy-in at the end of the day. even if they locate shares for you, you will enjoy paying hefty hard-to-borrow interest rates on that short. if the stock is not on the list, don't short...

I don't like double calendars in general. I don't mind the otm put calendar for a downside strike touch as vega (strip vol) will likely rise and help you. For an upside strike touch, i would prefer something with negative vega as strip vol will tend to decline into the lift. My bias would...

These are risk-reversals and they are a very important tool in your toolbox. The negative skew in stocks/indexes is such that you can use this tool to capture yield in the event nothing happens. Splitting the strikes (selling otm puts/buying otm calls) can give you even more skew benefit...

16000+ posts later and we've come full circle from March 2006. Read the first few posts of this journal w.r.t. the ES levels.

ballsy since 95.50 is like the Rock of Gilbralter today.