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What is the "WOFAL" thread?

You're welcome. These options won't provide cheap insurance. If they are far out of the money, they won't provide much insurance and may be overpriced even though they are cheap. If they are close to the money, they won't be cheap and they will be in the worst part of their theta curve. That is...

I recommend that you learn more about options before you trade them. This is not meant as a sarcastic remark. For instance: the underlying (in this case the dow e-mini) = the call - the put. So, when you own the U and buy a P, it is the same as buying the C at the strike of the P you would have...

If you are sure that this is what you want to do, you can get the same exposure by simply selling a naked put. Less commission and spread that way.

If you are a US legal resident you can trade DAX futures but not DAX index options. These are offered by IB for trading by non-US residents only.

I looked into this too, and as far as I could tell the only index or index futures options available that us legal residents are allowed to trade are n225 options on the Singapore exchange. If somebody knows differently please let us know.

I'm just starting to look at European options and futures and see that legal US residents are not allowed to trade options on foreign cash indexes. Does that mean I can't trade options on DAX or ESTX50 for instance? Futures options are allowed but not cash index options. Are there any good...

Mark, I'd like to say that I've read your book after finding you on Elite Trader. I have to congratulate you on such a fine accomplishment. I think your book would have to rate in the top 5 options books that I've read. Not because I want to trade exactly the way you do. But because it is so...

Yes, it is too bad. I looked into this too. The real advantage of spreadbetting is that you can trade with a very small bet size and this makes money management much easier. If you have too small of an account and too large of a position size, you'll lose no matter how good your system. To...

The back month options would be more sensitive to volatility and less sensitive to the passage of time. I suspect he would want to have the back month options long and the front month's short so his position has a more favorable theta profile.

Actually, I think Nikko and Bob could both be correct on this one. This depends on Bob's money management. Yes, Nikko is right , there is a lot of risk in the position. That is why the IV is so high. But I can believe that Bob can make a good return by doing this over and over again with a small...

I suggest that you play with this with a simulator program until it makes sense to you. When you really understand this at a gut level, I expect your trading will improve.

I wasn't trying to suggest that your ideas were wrong, just point out that he shouldn't play with fire until he understands what he is doing. Actually, if I were going to trade such a strategy, I would prefer the puts. In Jack Schwager's book " Stock Market wizards" I believe it was the...

And don't even dare to do anything until you understand that a covered call is equvalent to a naked short put.

That shouldn't make a difference. That is, you're still putting on a reverse calendar even if one leg is to close.

Google "dispersion trading" and you'll find out a lot about this idea.

Well, here's my opinion. If you don't spend the time to really learn options, you will most probably end up like nomoreoptions. Yes, they are befuddling. But if you put enough time in on learning them, they are also facinating. And you'll see a much richer landscape of trading than you...

Thanks MTE. I'm not a tax expert either, but I believe that the index options have the favorable tax treatment also. However, I don't think the options on ETF's qualify for futures type tax treatment. Also, I don't think that you have to sell premium naked to benefit from span margining. But...