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Capital gains and other taxes depend on your country of residence. There is stamp duty in the UK, but I'm not too familiar with how much it is or on which transactions/instruments it is charged. There is no stamp duty in the US.

In case of SPX options the NBBO is composed of only CBOE quotes.

No, chuckybrown is not referring to a strangle. If you look closer chuckybrown wrote "puts or calls" not "puts and calls".

What did you expect from an option chart!? Options do not trade frequently so you get charts that are random with huge gaps. You can plot mutliple tickers in thinkorswim. However, looking at the divergence between the underlying and an option is not very useful since the option's price is...

The problem is thinkrswim's clearing firm, which from now on requires butterflies/condors to be balanced (i.e. equidistant), anything unbalanced (aka brokenwing) are treated as two separate spreads and thus require double margin, which is ridiculous really. So I guess you are right, it is...

You can also fish out academic research from a google search by limiting the file type to pdf.

Options on RUT do not fall under SPAN, and the margin TOS gave you is actually Reg. T, so it is highly unlikely that IB will have a different margin requirement.

In general, to find out whether an option has cash or physical settlement you need to look up contract specifications on the exchange's website. However, you obviously don't need to do that for each and every underlying/option. With that said, all index options (not options on futures, but on...

You are not the only one with this dilemma. :) Greeks do NOT determine the value of options! They are just option sensitivities to different pricing factors.

Delta hedging is not a static strategy (i.e. not set and forget). You need to rebalance the hedge as the market moves around and your deltas change. The volatility skew doesn't change the graphs, however as your option moves along the skew the volatility will change and hence the greeks will...

No, they don't round up, and since OEX is cash-settled you don't lose anything.

This type of question comes up from time to time here, and the answer is always IMPLIED VOLATILITY. If your long call goes down in value while the stock goes up then the most obvious reason is a decrease in the option's implied volatility.

The best instrument to use depends on what exactly you are trying to achieve with the hedge. if you can provide some additional info in terms the portfolio and how much of it you want to hedge then people may be able to provide you some with some ideas. Have you considered using SPX or SPY...

(1) The graph assumes constant volatility. So there is no inverse relationship between time value and implied volatility. On the contrary, there is a direct relationship between the two. (2) The option's gamma (delta's slope) is highest ATM because at this point the delta is most sensitive to...

ForexForex, your calculation applies ONLY at expiration. beachallstar, this strategy is called a strangle and you can find a lot of info on it either here in the Options forum or using Google.

Let's say the market on a particular options is 1.56 at 1.62, with 50 cons on each side. If you put in a 10-contract buy limit order at 1.57 then you are actually adding liquidity to the market, as there are now additional 10 cons at 1.57 that someone can hit.

+1

You can trade weeklys with any broker that offers exchange-traded options, including Interactive Brokers (the OP probably just doesn't know how to get to them). In this respect, I like thinkorswim, as you can easily display all the options that are available on a particular underlying and the...

They have daily index options in Australia.

It's not a new product. Weeklys have around for some time now.