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No, I sell straddle and wait until expiration. I don't think delta hedging is the reason, as then buying straddles with too high IV and keeping them until expiry would be profitable.

That's why I'm using non-centered vol as it supposed to work around this.

This assumption should make things even more in my favour, so it doesn't answer my question.

Here's what I'm trying to do: 1. Fill an array with artificial prices which daily changes are normally distributed. 2. Simulate one year of selling 7 days straddles. Sell ATM call and put, take prices from BS formula. For implied volatility use future volatility (calculated on 7 days ahead)...

ToS can't open accounts for British citizens!!! Crap.

Can't you just execute long leg then?

Thanks. I found it a bit strange that they don't show openly who is the auditor.

Hi, I'm wondering which broker should I choose: ToS or OptionsXpress. OX is more expesive but have been audited by deloitte. ToS doesn't say who audited them - I have to write a letter asking for this info. Does anyone know who audited them? Thnaks

I totally agree and was not making fun of you. Any serious trading requires something like this. At the moment I have a best friend 'on watch' - if I don't call him until Friday evening to say 'all ok', he will log in to my account and close positions. We do it every week, but I would like to my...

That's not only this. What if I get hit by a bus? I would like some automatic facility to close all positions at market at the end of the day (or given date) even if I'm in coma in hospital.

Thanks. I wasn't sure if "covered" means "covered from the outset".

I sell call 110 and buy call 150, same expiry. Is call 110 naked for margin purposes? Also, would I be able to do this with acc below 100k at IB? Thanks.

How to spot a real system? The longer period you test, the better it looks:

Ok, I learnt something new. ATM Call price cannot go above underlying regardless of IV. For a minute I thought, that increasing IV will always causes increase in call's price. Here is another scenario: Short call is covered by long term ITM call. Underlying's price went up, short option IV...

So even if my net liq is below 0, all reputable brokers (mainly ToS and IB) will be perfectly fine with this, as long as it's covered? Would it be also ok if I was covered by long ITM longer-term call? Thanks.

It's a bit silly, but I'm trying to foresee everything that can go wrong: 1. I own 100 shares XYZ 2. I write 1 ATM Call, with normal IV (~ 20 - 30%) 3. IV goes to sky, my short option becomes hideously expensive. 4. I'm short this option, so my net liq goes to 0 or negative. Putting aside...

You wouldn't if others didn't duplicate. So you would if others did?

Anybody?

Page 264 in 5th edition sarts with a table about no cost collars. Allegedly, at 30% IV at-the-money put cost about the same as OTM call 30% away from underlying. For higher IV, OTM distance goes even further. Is it even possible? Seems like free money for me, unless I'm missing something? Which...

I never understood this type of thinking. And what will you do if one event wipes out the account (house money). Pay in more money and do it all over again, change strategy or look for a new job?