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I'm looking at commodities (ETFs) because it seems they're loosely correlated or completely uncorrelated with the index, so in these weird times it makes some sense trading them. For those who say "buy index coze it will always recover": 1) If the index drops 50-75% it's hard to stay positive...

I wonder, who the heck buys ATM options? If you backtest, it's a massively losing proposition. And yet, traders do sell ATM quite a lot and make money. Which means someone must buy - and lose. So who's the sucker and why do they do that?

It's 2020 once again! https://www.google.com/amp/s/www.telegraph.co.uk/news/2021/02/20/russia-reports-first-case-people-infected-bird-flu-world-health/amp/

Now if the stock pays $5 dividend in 30 days, that's a dividend yield of -Ln(95/100) / (30/365) =~ 0.63. Plugging that into the Black-Scholes formula: Parity relation: C - P - D = S - K, so 1 - 6 - 5 - 0. Sell naked put, get paid $6. Sell call and buy stock, get paid $1 option premium + $5...

Let's do some calculations instead repeating a meme. The spot price of the stock is S= $100, option strike is at the money K = $100, expiry in one month, volatility is 25%, there are no dividends or interest rate involved, call price C =~ $3, put price P =~ $3 and as expected from put-call...

Back of the napkin calculation say that you hold stock about 50% of the time. Therefore you get about half the dividends, which in case of SPY is about half of 1.5% year. Not much but enough to cover commissions, which otherwise you need to pay from the premium collected.

I agree with your post in general but I keep seeing people throw this "covered call == naked put" mantra and it's just not true :) The difference: when trading covered calls you also get dividends.

Volare?!! Wtf? Volare... oh, oh Cantare, oh oh oh oh Nel blu dipinto di blu Felice di stare lassu

Question is, would you buy stock (say pay $250,000 to buy index) if from then on you'd be subject to an annual 3% tax on the value of that stock? The value of the stock may go up or down due to the random component of the volatility but then the long term component would surely be depreciation...

Well it's significant because allows me to make a comparison with owning stocks. If you own property in the US, this level of taxation means effectively your assets depreciate by 0.5-3% per year. With stocks your asset APPRECIATES by 0.5-3% per year (dividend yield). It's far-fetched...

Spooky. So the tax is used by the government to collect money. Governments need money so there must be someway to get them. The fair way to get them is by taxing income, I think. But "taxes on income" don't seem so low either in the US. By comparison I'm paying some 35% and I get contradictory...

I still need more time to really grasp it. Like I said on the Options thread, the property tax I pay for a year is in the order of 0.05% of the property value, less than the amount I pay for electricity in a month. Bottom line is if you own a property you still need to worry about food and...

Thanks for clarifying it a bit. But the real estate tax (tax on the value of assets).... what if you don't have an income? 2% property tax seems like effectively you're renting your own property. How is that "owning" anymore? By comparison, my apartment (situated in a Romanian village) is...

Also the original question I wanted to ask: I "heard" that property taxes in the US are preposterously high. Like in the 2% per year range. Saw this for instance: So lemme get this straight. If you buy a $1,000,000 (one million dollars) property in New York. From then on to the rest of your...

I have a question about fragmentation of this forum and sub-communities. There are a lot of subforums and I only watch a few of them. There's also the feature of following someone so if they post on a subforum I don't actively watch, I get notified. But overall it seems to me like if I post on...

I think there are two cases when running some automated trading software: 1) HFT or relatively HFT algorithms (ex: scan a lot of instruments, trigger on transient condition), case when there's no other way but to rely on fully automated execution, since humans can't monitor enough instruments...

Well I'm not complaining, just wondering. The free screener is good and convenient enough for quick checks. Darn, would have been cool if they had options.

Well there seems to be no way to trade them in Interactive Brokers at least so I'm safe. So Yahoo screener is dumb for showing instruments that basically can't be traded by retail traders? I don't think institutional traders use yahoo to look for stocks, so what's the point of including those...

Thanks for providing an answer but I don't understand anything :) Any idea if I can actually trade these stocks and most importantly, if I can trade options on them? And how... I can't seem to find them in Interactive Brokerz...

And yet Yahoo shows it as a listed product: Any idea what's the deal with these "GS-PK" stocks?