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Yes, this is the ratioed double diagonal I was referring to above that some had suggested as a simpler alternative. You describe it more precisely than I did. It is long vega, so you have to have a feel for the immediate future of IV, as you point out below. [B] I agree, predicting...

Just to be fair to Maverick74, he wasn't espousing the trade, just presenting it for others to contemplate. It was a front-month butterfly and a back-month wrangle. Damn straight it's far from perfect. Still, how many structures can you think of that make money if nothing happens and also...

I no longer subscribe to dividendium.com, so I can't post an example. When I was a subscriber, the service seemed to offer what it promised. I wasn't too enticed, because the expected return was rather low compared to what seemed attainable in other strategies, but I do think it was risk free...

Check out the thread: http://www.elitetrader.com/vb/showthread.php?threadid=24449 for the "perfect option position." It's not really perfect, as the original poster of that notorious thread made clear at one point, but it has quite a few attractive attributes. There are "risk-free"...

The current job market is a joke. Don't despair about those creeps that are trying to make money off of you. They'll stop at nothing to make a buck off of anyone in need. Just keep plugging away with the job hunt. With someone of your experience and education, your ship will come in one of...

I haven't read the whole thread, but in response to the question of back-testing, why not just forward-test? Apply the algorithm to, say, the 500 tickers of the S&P for the next 3 months and see what you get. I know that may seem like a waste of time, but I have always found forward-testing to...

Hi, A number of merger offers are announced somewhat quietly, not making headlines or receiving TV news coverage. Is there a source for finding out about M&A deals, as distinguished from regular financial news? Thanks everybody.

I have some calls struck at 24 and am trying to decide whether I should liquidate them for $.05, or hang in there for a move beyond 24. I'm pretty sure they'll expire worthless, considering the deal mentioned above, but I'll sure feel silly if BKC does move up beyond 24 after having closed the...

Hi all, 3G is buying all the outstanding BKC shares at $24 per share, although I can't tell when the transaction will be final. Is this a merger whereby BKC will disappear as a ticker? Or, will it keep trading into the indefinite future, with the potential for rising above $24? Thanks so...

Thank you all for such thoughtful replies to what seems a prosaic topic at first glance.

Dear Gentlemen (and ladies, if there are any--god forbid), The risk-free rate is one of the variables required in order to solve for the Greeks. It should be continuously compounded, as well (at least in the BSM model). Where can we get that data? Is there a site that lists the rate we...

Welcome Dylan. Yes, I'd say you're new to the forum, with all of 1 post to your credit! I look forward to reading more from you. PnL means profit and loss. ETFs are traded just like stocks. They are not traded in any pre-set lots. You decide how many shares to buy or sell. I don't know...

I've been watching this ticker daily and am also very intrigued by its behavior. Seems to almost have a mind of its own. I wonder, if its performance is pricing in an upcoming decline in the USD, why isn't such a development reflected commensurately in the ^BVSP? EWZ's October options are...

Hi option friends, For those interested in hedging some of the Greek risk variables, knowing the gamma of the gamma, aka speed or DgammaDspot, may seem worthwhile. Unfortunately, it's never really listed in any of the option analytics softwares or subscription sites (that I know of). Is...

One of the most common misconceptions about Iron Condors I encounter is the notion that there is any difference between an Iron Condor and an ordinary condor or between iron butterflies and regular butterflies. They're really the same respective organisms, just with different skin color, if...

Thank you very much, livevol_ophir, for taking the time out to set the record straight.

Thanks. Great lead!

Yes, d1 is itself a variable included in the formula for speed (among other Greeks), but I was wondering if the VB code on the noted site might be solving for speed and calling it d1 as a misnomer. I suppose it was more of an Excel question and I should probably have confined it to an Excel...

Oh, so am I to understand that market makers do indeed pay fees beyond clearing and OCC costs? A number of others on this thread were suggesting that MMs get to trade for free, apart from exchange costs. According to this fee schedule, it looks like market makers are paying $.18 per contract...

Hello to all, I was trying to calculate speed (also known as dgammadspot and "the gamma of the gamma") using excel and found the following website: http://www.power4xl.com/black_scholes/functions/greeks.html which solves for the 5 main Greeks as well as d1 and d2. Can anyone confirm if...