Search results

Yes it does, it gives me an example of one of the ways someone is doing it. Looking at this way, how would u avoid variance creep into your backtest results. Since the futures contracts are very rigid and you cannot customize your strike price, u assuming that you would get that type of...

At saxo, you can choose any strike, maturity from 1day out and size. In futures is a lot more rigid than this.

Where does the calculation of implied volatility and vega come from? Is this also from futures?

No replies, seems like option traders just wing it?

IN spot fx, when u have an idea for a strategy, you programme it and then run simulations and stress tests to see whether it would be profitable with least variance between back tested results and actual trading results. How do options traders do this? especially those that trade otc fx...

Thanks............i am used of always looking for the trap door when trading. I was actually making things harder for myself but this makes things much easier.

Excellent, that clears everything. Thanks. I was worried about the delta and trying to proportion for the variance in delta through the life time of the option. Thanks a lot. It also means that, example i bought a way out the money put on aud few days ago and it started making me a net profit...

Example, i am currently holding nzd/usd spot position since th option expired in the money. I bought an atm put for 35pts on $100,000 contract, so cost was $350 at $10 a point. My strike was at 0.6510 and price is currently at 0.6330 and i am making $1761 holding the spot pos now.

Makes sense.....i really appreciate you taking time out for this feed back thanks. My final question on this matter. If (S-K) - 0P= net profit, my problem comes in with delta. If i buy a $1000 contract, i get $10 a point movement if delta is 1 to 1 or if i am holdin a spot position. How can i...

Ok, i get that. I am just trying to clear up the doubt i am having. If i buy an ATM call, delta is usually at around 50%, therefore price is not moving 1 for 1, so my profit will be everything above the strike price also taking into account delta movement over the period. The net would be then...

i pay 350 points for the option, for 10days, after 10 days i get 150pts movement above my strike. Now, once rolled over, is my profit only the 150pts or do i get something from that 350 initial val of the option? My understsanding is that due to Theta that 350 intrinsic value goes to 0 on the...

Yes, thats is true. My point is, when the option expires and rolls over into a spot position, is all the profit that is rolled over coming from the favourable movement above the strike price, or is it a combo of movement above the strike price + any value of the option before going above strike...

explain in 1 sentence why?

Is this a very dumb question, or is nobody certain?

Look at his down months for this year, they are quite big. This means that he is taking a lot of risk, which is only seen when things just don't go your way. So his returns are very possible if u look at the his down months this yr. At the end, still an exceptional performance even if he blows...

I have a simple question. If an fx option expires in the money, does it have any intrinsic value besides the value achieved from price moving above the strike price of a long call? I understand that theta eats away at the option value as time increases. The reason i ask, is that i am running...

ok..............their pricing looks fair, i will be able to get a better look in during the week. Whats your experience with their pricing on vanilla, day, week options?

Atticus............at saxo when your option expires it settles into a spot position and then u have to close out the spot position or you can keep the spot trade on. Does the daily options settle into a spot position or does your account just get credited when option expires and the trade is...

Thanks, forgot about these guys, saw them about 6yrs ago if i am correct but didnt feel comfortable with them, but will check them out............i hope they don't just offer digital options. Thanks.