Search results

I see your logic; this is not a permanent long-term strategy, however; it is a short-to-medium term way to transfer taxable funds into a tax-deferred account. When the money is transferred, the program is over. If you had a small accoung maybe $25,000, you could so this in a few months. Then all...

I understand your skew scenario, but it's not what I am getting at. And I understand that the fat tail risk could wipe out profits of writing OTM options. But, let's sya, with two $100k accounts and collecting maybe $20 per $1,500 or so of margin. That is $1,200. How many months could use go...

I received a simliar vague reponse from an accountant (but not an authroity on taxes). His rationale was that the IRS had not deat with issues like this (my example plus other, such as wash sales using an IRA and non-IRA account) simply because it means opening up IRAs to annual reviews of...

Well, to use casual short-hand and not a probability calculator, let's say you buy and sell the same way-OTM call, with a delta of say .09 with 30 days to expiration. You think that has a 50-50 chance of going ITM? Small premium, to be sure. But do this over and over .....

Simply put, is this legal: Let's say I had an IRA with $100K and a non-IRA brokerage account with $100K . My aim, for tax purposes, is to generate losses in the non- IRA account but have off-setting positions in the IRA. I would be selling OTM futures option premium in the IRA and buying the...

Just going on record that I getting short here with NZD and UAD futures, futiues options and ETFs and will take some pain in the short term, if needed. I know the fundametals are so-so, at best, and I'm being optimistic in viweing the dollar vis-a-vis AUD and NZD. But the technicals are so out...

Sorry I missed you: I lived in Boca (I still have a couple homes there.) But three months ago moved to Sydney for two years or so. Will likely be back in 09. See ya then.

Agreed. Patience is required here, if you are a short. I've been burned too many times getting loaded short and being way too early. Shame there is no decent volume in AUD/USD futures options, as it would be a safer way to speculate at this juncture.

Guys, I'm chomping at the bit to short AUD/USD. But the situation, fundamentally, especially with rates in the States, is so unsettled that it's a 50/50 bet in my book whether the Aussie is going to continue this tear or if this is a comfortable place to short a (intermediate) top. I have a...

Can anyone here offer a precis on the pros and cons of each for a small trader (under $1 M) looking for premium collecting strategies. Been happily writing options on the futures and hedging with futures, but wondering if OTC curency options might be more valuable; the volume traded...

Read Lowenstein's book. Pairs trading between 29- and 30-year bonds, foriegn debt, a short squeeze, all sorts of stuff.

I was quotng ASAP's comment, btw.

Names please? VN and .....?

Thats a new one to me -- calls only? Ansbacher may do that sometimes, but usually writes both sides. VN, obviously. But there are a dozen or so others -- check Futures magazine over the past 10 years and the pack of the magazine trader profiles -- who write only premium as a strategy and they...

First are you doing FOREX options or currency futures options? I'm futures-oriented. IN terms of the number of strikes, on EUR and GPB there are enough with decent volume. Not so sure about the JPY and CHF. These are the main four I trade with Globex/CME. In comparison, ZN (bond futures) options...

Of course, black swans happen, and options writers are aware of that and take the risks. But if you decide to take fat-tail risk is it really better to spread your bets and increase the possibility that one will blow up? Wouldn't it be more prudent to only use a small portion of your trading...

True, the vols are low, save for the yen recently, and even then; apologies for the doggerel. But, and tell me where I am wrong, on a per contract basis and premium collected versus initial margin, currency options have it all over cash-settled index options, S&P futures options, the ES at...

I agree with you vol/risk assessment, but I'm not sure it is counter-intuative, as you seem to imply, as cheap vols often get cheaper, as stock traders have seen over the past couple years, and high vols can go even higher. So behaviorally it is indeed what many seem to do, but whether that is...

Yes you are, in a way, right about carry trade having similar characteristics to writing calls on the yen. But it's not something that CTAs or others whose main strategy is options writing do as a substitute.

I know there is the subset of pro investor/traders/CTAs out there who mainly look to collect premium -- Ansbacher types -- by writing options, generally on the SP (S&P 500) futures options, and sometimes on ZN (10-year Treasury) futures options. (Other option writing strategies, such as on...