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Most of the time its probably better not to exercise and just sell the options in the market somewhere before expiration. There's theta in these things ...

what you really should use (not possible for most private investors-because they have to exercise before the close) is what you are going to guess where the stock is opening on monday. That's the real in the money. Normally you just use the close. Looking at your questions you probably should...

what options are you really talking abuot, i'm talking equity options

saterday

thanks for the info, problem is, I was customer of e-signal about a year ago, dont think the free trial is possible then anymore. Nevertheless good suggestion.

Does anybody know of some software to backtest chartpatterns in bunds. This will probably mean some subscription somewhere to a chartprogram for a month or so. Any ideas on how to do this in a not too expensive way. Thanks.

i meant the short intrest rate future.

def pointed the short version of the solution out: the theoretical pricing. I was jumping allready a step or two ahead. Try to make some theoretical calculations of contracts in a spreadsheat. You will see that the spread reflects the difference in intrestrates (when a dividend goes ex, it...

bluehorsshoe answered allready alot about the question: financial futures spreads are basically a play on intrest rates (yes its more difficult than that, but basically that's what's its all about), spread trading only makes sense in commodity trading, unles your a floor trader. there is not...

you are missing a lot ! Better check some things out, too hard and too long to start explaining here, the bottemline is, its just not worth it.

it's obvious you haven't done this: i have, its your worst nightmare i can assure you. And the results were even good ... so you can imagine ....

this might be true for mm-groups, but not if they are locals.

three words: don't do it ! nothing is as bad as trading for family, friends is a close second.

this is the kind of thread you want to see if you're long puts. :D :D :D

you dont buy the stock, just the call basic option principle: stock + long put = long call (its a bit more complicated than that with div, i know), you save commissions.

if you buy at-the-moneys, it should make no difference, it's in the price, otherwise the arb could be done.

you have a point, but you might as well just buy the calls then, it should be just the same.

ok, things are starting to get a bit more complicated now. first i have to remark that the dividend will be priced into the puts, so i guess you play the game that it will fully recover the dividiend. This might work but ... try the scenario were they suddenly stop paying dividends, the stock...

hmmm, your long the stock, short the put, the fact of suddenly not paying the dividend will surely make the stock tank, so you lose on both sides and you dont get the dividend you were expecting .... looks rather painful to me.

oops, we have a problem, we don't have enough money to pay the high dividend anymore from this year on .... oops, i have a problem with my option position ....