Search results

Thanks a lot for the input, FullyArticulate. I suspected it would be difficult (or impossible) to find a comparable platform, especially for pit traded futures. I'll take a look at ProphetX, but the thread you referenced is pretty scary - maybe I should just stick with equities/indices and...

I have been trading equity and index options for some time on thinkorswim and really like the platform and am very comfortable with it. I would like to expand into some futures options trading as well, and was wondering if anyone knows what futures trading platforms/brokerages might be...

Thanks a lot for the input, Grant - your insights have been helpful. I'll let you know how the trade goes - or maybe I'll just buy a lottery ticket. :D -Steve

Not sure about the "theoretically mispriced" part but, from my perspective, if the actual volatility over the next 34 (okay 32 now) days turns out to be anything greater than 7.8%, then the call was underpriced. JC Hull’s Options, Futures and other derivative Securities covers this, and...

Appreciate the response Grant - good points! Prior to reading Natenberg I thought there were basically only two ways to play an underpriced option, in this case the OTM call. Method one was to buy the call and do nothing - most of the time it would expire worthless, but the few times it paid...

I'm pretty much a newbie at this, so I'm going to freely admit my ignorance and save you experienced folks the trouble of pointing it out! :p I've been reading Natenberg's book and, if I understand correctly, any single option that appears to be undervalued relative to the expected volatility...

Anybody know what happened to Tom Bierovic? He used to have a website called synergytrader.com, which now links directly to http://www.hotstix.com, who says that Tom has not been there in years. I saw some DVDs from INO.com of presentations Tom did in the late 90s and he seemed like a...

Does it make sense to scalp into ex-div using puts? (approx 100 stock, 2 put contracts initially) Seems that put IV would be held artificially high until ex-div, hopefully mitigating time decay.

Great thread! I’m only understanding about 30%, but it’s still great. Where/when do you rebalance GM? Is it at set levels or do you eyeball or calculate every few days based on recent hi-lo vol? If spot is between strikes do you normally use a strangle, or put on nearest straddle...

Not following. Still not clear to me why immediate exercise of the put I sold doesn’t result in my buying the stock at a discount of .48. Why would I have to hold until expiration to realize this discount – isn’t it immediate? I do believe there’s no free lunch generally. I...

Your point's well taken - the bid on the seriously DITM calls is less than intrinsic value - makes sense that immediate assignment would result. But for the 480 strike, when I sell the put it has .48 of time value, if I'm computing correctly: strike-spot-put bid 480-405.08-75.4 = .48...

Ok, thought about it a bit more but I still think I’m missing something. Still seems that the carry rates can be less than my risk free return - money market or CD or the like. For example, here’s a (supposedly) real time quote on June GOOG options earlier today: stock ask -405.08...

Gotcha. Appreciate the speedy reply!

Still don’t think I can bid on puts at .10 under parity on expiration day, can I? Say stock at 48, ITM puts at 50 with lots open interest. Bid on those puts from the MM will be $1.90. He’ll buy puts, buy the stock, immediately exercise and make .1 per share. Let’s say I’m...

Assuming a stock doesn’t pay dividends and I am willing to buy today and intend to hold it fairly long term, am I normally better with the synthetic equivalent – long call, short put? (any tax/capital gains issues aside) Appears that the downside vs buying the stock outright is two...