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Hi, does anyone know or have a link that explains the SSF behavior towards its expiration. Does it always converge to the theoretical price as stated by the formula: S-PV(Div)*(1+r)^t For example, stock is at 55, DEC SSF trading at 50. On expiration, stock trades at 70, what will the SSF...

depends on the area, some hard hit places may have very well bottomed. But around nyc/jersey waterfront, there has been very little movement from the highs, so definitly not a good "low risk high probability" play yet. Dont forget you will also tie up significant cash and deal with all the...

those risks seems very acceptable for the position. I use IB too, dont think it's likely they will do 3. I looked this trade over and over just couldnt see anything wrong with it. Atticus, are there any gotchas. Noticed you ninja posted quite a few times in between. :p

this seems too good to be true and i am even using market fill. what's the catch?

yes it's always been done to shake out the weak hands. AIG is oversold technically. Wait for confirmation that the break below double bottom is a fake, then i would probably edge in by writing some slightly otm puts and see how that goes. At <$18 and the downward move it already had, this play...

That's true, basically you are saying for equal premium you can write a further OTM put than call, therefore the risk remains the same. But lets say if SPX is at 1300 and you write the sym 1350C or 1250P. Even if you received more premium on the 1250P. When the underlying moves against...

This is pure comedy, i actually loled. Optioncoach made a comment about selling call instead of put if a gun was to his head, and now he's getting tag teamed by 4 people. ROFL!

Why do you continue with this sillyness. You realize by writing such a large position on low premium, you will be completely fucked if the position makes a big move against you with almost no room for recovery. It's the very definition of picking up pennies in front of a steamroller. You...

From zencar's website: i wouldnt exactly bet the entire networth on its stock just yet... :p

DMO, you are an endless well of option knowledge :) this is very clear now. Thank you I understood your first post on the otm call, and studied about the put/call parity a while back, but couldnt connect the two together.

In my view, there are 3 types of naked option selling. 1) You naked sell option as you would to the underlying based on your technical/fundamental(or whatever) analysis. Example, if ES is moving towards a necktie resistence at 1285. Instead of shorting 5x at 1284. I could naked sell 5x 1290...

DMO, that makes perfect sense for OTM call. But i am still a bit confused in the case of DITM put, the prices are not junk 0/0.5, they do scale up per the strike with a tight bid/ask. Are you saying basically once the delta becomes 0.98+, IV loses its meaning/usefulness as it basically becomes...

This applies to all options, but using an example: NVDA is at 13.5. DITM SEPT 45P at $31, has an IV of ~188% I am really confused about this. I understand what standard deviation is, but in this context it's basically saying the 45P has a 68% chance of staying between ($31-$55) and...

http://www.elitetrader.com/vb/showthread.php?s=&threadid=132573&perpage=40&pagenumber=4

i think it's a good deal, just that noone has money right now. It has to be someone with very deep pockets AND not having a lot of duplicate business units already. Probably some foreign investment who wants to establish a foothold in the US financial, this will be a once a lifetime...

A low risk trade? to short a stock/call that has dropped by more than 50% in a few days, in the sub $5 dollar range, and with a gigantic short interest? wtf are you smoking exactly, and can i get some.

"Much further" translates to $1.9 as max risk though. That's if the stock goes to 0. Lets see if it drops another 20% today, what a crazy week ;)

Anyone making a play writing the sept 2.5P? i know the company is insolvent but after the bloodbath this week, FNM is at 4.4, and sept OTM 2.5P is trading at 0.6 premium. That's pretty insane.....

Ok so sounds like they move pretty closely similar to uso and oil. Thanks I closed out my entire uso short position for a nice chunk of change as it's getting close to the 200MA. Looking to make a shorter term play on gold now. The drop so far has been dramatic from a technical standpoint.

bump, can anyone confirm. thanks