Search results

You are absolutely right that "the low print might not be the intraday low in the option." Since my holding period is several weeks, I don't pay too much attention to option's daily high and low anyway. It's very hard to day trade options. An option's vega is proportional to its underlying...

We have to pay full price without any margin when buying options. What I was saying about margin was that when we sell options, the margin is either 10% of underlying or 20% of underlying minus out of the money (plus all sales proceeds). Since the DIA is a little over three times of QQQ, the...

I learned meditation about fifteen years ago, before I learned to trade. Meditation helps me in many aspect of my life, including trading. For one thing, I can have a sound sleep no matter how stressful a day I had if I meditate before sleep. Sometimes I was so exhausted and forgot to meditate...

I agree. It's about use of your capital. One DIA option's margin is about three QQQ options' margin. You can get more tick movement from 3 QQQ options than one DIA option.

I like options on DIA. My experience is that options on DIA have a little better spreads than DJX's. There is no options on SPY. But if you think S&P100 moves close to S&P500's you may try options on OEF but the spreads are much worse than OEX's. Options on QQQ have much higher volatility...

def, if this article can be accessed on the web, would you please post a link to it? Thanks.

In the May issue of Stocks Futures and Option (http://www.sfomag.com), ISE's David Krell said they were going in the index option business but didn't say which products. It's too bad if OEX is exclusive for CBOE.

My understanding was that ISE was number one in stock options. But if you include index options, CBOE is still at the top. Are you saying ISE is number one for total now? Wow!

The ISE will go into index options market after middle of this year. Any one knows which products they will offer? Will OEX be one of the first? Can we expect the bid/ask spread of OEX and DJX, etc to narrow significantly?

One possible way is to check the put/call parity. For European option Call - Put = Stock - Strike * exp(- r * t ) while for American Stock - Strike < Call - Put < Stock - Strike * exp(- r * t ) These are in theory. For practical purpose, you may find you are in a grey area...

The problem lies the use of logarithm (I assume your "Ln(Ht0/Ot0)" means you take log of the ratio of Ht0/Ot0). Since Ln(Ht0/Ot0)=Ln(Ht0) - Ln(Ot0), the reference point of opening price has been canceled out. So these correlations are saying if today's high (or log of high, to be more precise)...

I trade with I.B. For $10/month I get stock and stock option realtime quotes in my Excel spreadsheets(DDE).

To calculate implied volatility you need these: underlying price, option premium, strike price, days to exptration, risk free interest rate(treasury bill rate) and cost of carry. You have to make sure option premiums and underlying price are collected at the same point of time. Good luck.

I agree. Greespan should tight in 1997, with maybe just one 25 basis point hike.

*************************************************** This type of polling is pretty dumb. In order to see the results you must vote, so everyone will vote just to see the results. If only because of that the results are very unlikely to faithfully reflect the so-called reality...

I downloaded my monthly statements from I.B. But when I tried to open the file using Microsoft Money (version 98) I got an error message. Is is because the version is too old? If I need to buy new software, which one should I buy, Quicken or Money?

Be patient. Give yourself credit AND MORE TIME. You will not fail unless you give up. There are many who took 5 years, 10 years to succeed. Don't give up!

I trade with a 100% mechanical system. As long as my system works, i.e. datafeed live, no hardware failure, I'll trade even if I don't feel good physically. I had profitable days when I was sick and losing days when I was energetic.

It's easier to configure a dualhead card than two separate video cards. e.g. Matrox Millennium G450. One card with two output. http://www.matrox.com/

The delta, gamma, theta and vega are sensitivity measures of an option. They measures how much B will change when A changes: for delta: B = the option value. A = stock price (the underlying); for gamma: B = delta. A = stock price; for theta: B = the option value. A = days to expiration...