Search results

Oh yeah, that's right. I gave up on trying to remember the names of things with conversions/reversals. I preferred to refer to them as - "Do you want the put or the call" ;)

Is there something such as a covered put similar to a covered call ? Yes, A covered call is nothing more than a synthetic put. So a synthetic call would be a covered put. Although I have never heard the term used. And is there a difference between a covered opt position (call or put) on stock...

I never thought much of Hull traders. O'Connor was funny as well. They had an enormous talent spread between their upstairs and floor traders, although unlike a CRT, they hired floor traders to eventually move upstairs, and most of their floor traders went on to do extremely well. The two...

1- I'll continue to agree with Bum. 2- "the best answer may be that while both spreads and nakeds have their pluses and minuses, neither is better in an absolute sense. The question to answer is which best suits the individual trader and his/her needs/goals." Elsewhere, I keep saying that.

Compare: Put spreads lost $80, which is 100% of $80 net margin. Naked put lost $6, which is 7% of $86 net margin. So would you rather lose $80 (100% of trade margin) or $6 (smaller % of margin)??? ------------------------------ The credit spreads had a lower margin requirement while using less...

I think back to the knowledge I was required to obtain and display before being allowed to do my first option trade...

I guess 3 days before expry when someone sells a deep in the money 100 delta call under intrinsic and you immediately hedge with the underlying (and lift the otm at cab). That, along with conversion/reversals are about as pure arb as you can get. Maybe div arbs as well but that's more than I...

"What's a real life example of #2 and #3?" #2 - Only if the Central Bank trades options. For anyone else, this does not exist. For large traders it is absolutely essential to work in a place with a very strong balance sheet that affords the lowest rate possible and the narrowest bid/offer...

"You(sic) concern is touching, but no need to worry." I showed no such thing. :p

You don't get invited to a lot of parties, do you Sig?

It is why with option trading, or any trading for that matter, success can not be guaranteed from reading a book. If I could mind meld all knowledge I have of trading to someone else, I would still bet against them. Very few people have the constitution to handle the downs.

1- Only you don't understand why. Everyone else accepts why. You just demand empirical proof. 2- I think four people agreed it is not really beneficial to define the one to ten reasons why and isolate each ones effect. Nor is it possible. You also speak about professionalism, but refuse to make...

So low means he is shaking his head with how low they are 'relative' historically, or maybe even realtive to actual price movement. It's also a 99% chance he owns them and feels himself choking on them, all while there is someone offering all you want in your face. This is almost always a...

"It is a level of professionalism that most traders don't rise to, but based on the level of discussion on this thread I thought it was a possibility here, my bad." Being someone who loves making childish comments, I have to compliment you. This one is right up there. Think of it as managing a...

At first I thought it was funny to say F'k quant support. But truth be told - at the end of the day it is irrelevant why it is there. All that matters is that it is there and that you trade around it. Speaking anecdotally, paper flow plays an enormous part and the dynamics VST laid out were...

F'k quant support. VST - I agree with everything you said. Alex, as well.

"Otherwise humility is in very short supply among economists, who unlike, say, physicists, almost never publicly admit that there may be gaps in their knowledge and problems with their assumptions." Were economists to admit their lack of understanding in the topics they pontificate on, there...

I once did a curb trade before the opening. Other than that. A perfectly clean career. Compliance always frightened me. Anything that falls under the realm of the "Feds" is not worth the potential problem. Like walking into day one of the 9th grade, finding the biggest 12th grader and spitting...

Double down was meant figuratively more than literally. To suggest getting yourself deeper. Heck, maybe you triple downed. "it is really unwie(sic) to believe in all the rules that are in the books and all the wall street adages" I agree, I doubt more than 6,000,000 people literally died...

Either structure. Yes. (Assuming he/she/it bought, not sold, the fly)