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All this being said, a spread like that makes money if Vix goes up or at least stays above 20, which will happen if the current rally runs out of gas... If this was a portfolio hedge, it makes more sense for the initiator of that spread to be bullish on stock and therefore took the credit side...

I know it doesn't say much but there was a huge spread put on this afternoon on Vix dec 20/18 puts... About 70000 contracts on each side, which is double the open interest that was there on the 20.

A and 95%

well yes, the delta will tend towards 0 but if you are long call, you cannot have negative delta

a really nice piece of work IMO: http://www.cboe.com/micro/vix/VIXFuturesOptionsUMass43pgJuly2009.pdf

It is because the person who exercices the option forfeits the time/volatility value of the option. Lets take a hugely simplified example with BAC: As I am writing this BAC trades at 14.23, the nov 13 calls are at 1.65$. So if average Joe buys the call at 1,65 and exercices it, he basically...

yep Adam, I was. I was short a few hundred (400) puts on the XEO 470 since wednesday. I would never in my right mind go with the OEX, I prefer european options... I wasn't nervous today, I knew it would take a huge drop (more than 5.5%) but I sure was wednesday when the whole think kept going...

last week there were no weeklys per say, the weeklys there were in fact the regular monthly options that were set to expire that friday. You have much less choice with weeklys. They go by codes A for week 1, B for week 2, no week 3, D for week for and sometimes (like today) E for week five...

you need to go synthetic long, buy ATM call and sell ATM put. Its even better because the dividend is converted into capital gain which is better against Mr. Tax

well if you want to be able to to this from a single account, IB is the obvious choice... Otherwise, depending on your volume, Optionshouse is very cheap for options on indexes (including weeklys). I do not think they do futures or future options though... On the futures side, I know zumo...

I will tempt an answer although there are much smarter people here... Maybe the problem you have is with the velocity of gamma. By using ATM calls, the gamma on these guys is at its max and it will decrease and move much slower as the market tanks. On the puts, as they get closer to being...

Actually not a bad idea. Especially if the guys says he has owned them for a long time, maybe one can find a higher strike that will pay back the same amount he bought them for originally. Playing with other people's money is always a good idea! In that case you don't need to worry about a...

you long or short? These ATM call have high delta and must be relatively expensive. If you want to benefit from these stocks moving up (that's assuming you are long), there are better ways IMO...

Symbols cannot change... "V" stands for october in the puts world, W is for november so the options you were seing last week as DIAVW were 100% the october ones... But all this doesn't mean yahoo didn't screw up. You want option quotes/symbols? use the cboe website, after all they are the...

maybe the position itself is an hedge, if someone is shorting bank stocks left and right because he thinks upcoming profits are going to be bad... It would make sense that he would want some protection.

I have a very basic Vix options question, I never traded them so I am unfamiliar with it: Lets say for example that I buy a call on the vix future, december 28 for 2,00$... It is still unclear to me how this is priced. Vix options are multiples of 100, so in theory that means a 2,00 call...

options are not for daytrading. Besides lets say a daytrader moves in and out of 50000 shares a day, thats like 500 contracts... So unless you trade you use OH, you will end up paying a mortgage every week to your broker, good luck turning a decent revenue. On the plus side, if you do so, you...

dumb question: when they say s&p 500 options at 2.29 per side, they are talking about the "regular" spx options right? not options on the s&p future?

I suspect he did it on the Canadian side, the oct 54 "closed" at 3.30...

ForexForex is wrong, you are correct on your max risk and reward. Now what you would need to do (if its not already done) is to estimate your likelyhood that RY will expire below 54$. That is the only way you can estimate if your risk/reward ratio is worth it. You cannot say in itself if the...