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Last I checked the vast majority of those "worthless" companies are doing well and you as the taxpayer made $15.3B in profit on the "bailout" (http://money.cnn.com/2014/12/19/news/companies/government-bailouts-end/). That said, clearly what constitutes a company that one should let fail is in...

Do you happen to remember what option you saw that behavior on? I've never been able to get the MM to move in response to my orders, so I always assumed they're working off their own pricing model and ignoring the other orders. However I'm always on pretty liquid index options, so very possible...

What a bizarre ad hominem attack. Was it my use of the word compassionate that made you think I was armed and threatening you with violence? Listen, I happen to personally think that the FTT is probably a horrible idea and free college for everyone is probably a bad idea. However I'm happy to...

Why don't we do this. Please explain to us what put call parity is and why it holds for ATM options. In order to do that you'll have to learn what put call parity is, and based on the stuff you've been posting I'm guessing you'll find it doesn't mean what you thought it meant.

There is a very important distinction between making money running a business and making money trading. It's clear your conflating them with your comment on IB. Yes, their software is horrible and they've got far more than their share of imbeciles working there. But they're not making money...

Again, 3 is just not true. Why would fops violate put call parity? And why couldn't an ATM be found? Put call parity doesn't require an exact stradle to hold.

Sure you can, with the attendant additional risk required to earn that 9.5% above the risk-free rate. Anyone who tells you otherwise hasn't studies the concept of risk adjusted returns or is selling you a ponzi scheme. There are lots of serious programmers, some of the best in the world in fact...

So the title of the thread is "Why are prices of ESTX50 ATM options so different", bold added by me. Put call parity doesn't require an exact straddle and as Robert pointed out so nicely the parity price is the future not the spot. Even when not ATM, there are only a few cases where it's been...

Got it. The future and spot will converge on that day, so makes sense to trade around the future.

Give the guy a break, he admitted he was probably just being a sore loser. We all have to get a rant out every now and then, as long as we admit it as such after we cool down no harm, no foul.

Can you expand on that a bit, I'm missing something I think. I know SPX weekly options definitely cash settle at the S&P 500 closing on Friday, and consequently trade all week based on the actual SPX cash price, not the near month ES price. You can hedge with ES/ES options but you have to take...

The level of ignorance on basic option behavior on this thread is appalling. Look up "put call parity", ATM puts are definitely not more expensive than calls by pure mechanics unless you have a hard to borrow stock, which isn't the case here.

In most civil societies we don't expect children to "work hard" or "be ambitious and strive to better themselves and their family" in order to obtain a high school education. Most compassionate humans feel that a child shouldn't be punished for the sins or omissions of their parents, and even...

Another interesting game to play is to buy subordinate debt with the idea that an activist hedge fund may come along. They buy up debt at pennies on the dollar that should be written off at $0 in a chapter 11, then threaten to drag the chapter 11 out so long that the senior debt holders end up...

That was a brilliant comment and really helped us understand the logic underlying your point of view. Thank you.

No nerve at all, just pointing out the real world doesn't match your echo chamber. Again, by your definition the SOCIALISTS have good company with Warren Buffet. But hey, he's just the world's most successful investor, so what does he know about what political orientation you think wall street...

And a related question, when do the bonds mature? You can't be assured that they will pay out par until they mature, even if the stock price goes up. I think the OPs original thought process is sound, but matching the tenor of the bonds with the put/short position is the key.

Just a quick lesson in logic, it doesn't necessarily follow that because you can't succeed in futures it must be that the "cme is the biggest scam". You'd need to produce some evidence of that, and your failure doesn't comprise such evidence.

There are and have always been centrist and left of center individuals on wall street and in the financial world, a simple look at public campaign donation records will demonstrate that. According to you I'm guessing Warren Buffet is a "lefty" (does that make you a "righty"?). Not sure why you...

Are you saying that bids and asks aren't honored or that the bid/ask spread is just wide?