Search results

Domestic, This type of position is great for bull market. Using span leverage, you can make tons of money.

Mark, Just want to remind you that span margin changes everyday. If you use span leverage, you have to reserve more than the span requirement to avoid margin call.

MTE, Thanks a lot. I realized that I would get the answer if I posted it here. In general, Is it true that ITM bid ask spread > ATM > CTM > OTM?

MTE, Thanks a lot. I have a risk profile modeled by TOS. The price difference was 2.3 this morning. Does it mean there was an arb profit of 0.15? How come the risk profile (long put calendar and short call calendar) is not flat at Feb expiration.

I am sorry. I started one but nobody seems to care as most of the synthetics experts are having fun here. http://www.elitetrader.com/vb/showthread.php?s=&threadid=85504 4Q has consumed all the time of the option experts that they no longer have time to look at other threads. :D I am...

Since there are many experienced option traders who are synthetics expert, I like to post a question unrelated to married call, but related to synthetics. RUT is currently at 790.16. Are 790 calendar call and 790 calendar put equivalent? Their individual risk graphs are very similar. I...

Mark, He trades er2, and so uses span margin.

Which one? I only found statement like "illegal brokerage firms sell and trade shares of unlisted companies".

In China, there is no margin acount. Brokerage firms invent their margin accounts by finding lender A for individual investor B. Suppose B has $1m (stocks or cash) to invest, his brokerage firm finds someone A to match the same amount as a loan with a contract that B will return principal...

Can you confirm if it is illegal to borrow money to invest in China?

When you looked at CEPH that day, what was the price of CEPH?

Currently rut is at 794.03, and the volatility index is very low. If I want to make a volatility bet, which one is better? 1. long rut mar/feb 790 put 2. long rut mar/feb 790 call Both are close to delta neural. Are there any advantages of one over the other?

piccon, what is your experience with CTM spread for rut? Can you trade at the mid? I was trying to sell 770/780 put for a credit of 2.6. Even the mid becomes 2.7, my order is still not executed. The bid ask spread for CTM options seems a lot wider than FTM.

Kapil, If you are an active trader, you might want to consider to apply the trader status and use Mark-To-Market method for tax purpose.

Traderstatus, thanks a lot for your info. I have to reconsider and see if I should register in my home state instead of Delaware. I don't see any liability I will have as a trader, and so Delaware doesn't seem to offer me any real benefit.

That is the tax law. A contractor is actually a sole proprietor. He can find other deduction such as solo 401K to reduce the taxable amount.

Sorry, Mark. I meant Feb 800 call, not Dec 800 call. Now I understand what you meant by $60. LOL. Does it make sense now?

What is corp tax for a pass-thru LLC?

If the "contractor" is an employee (i.e. he gets W2 from you), you are responsible for one side of SS. But if he really gets W2 from you, he is not a "contractor", but an employee. A true contractor will get a 1099 from you, and he is responsible to pay both sides of SS.

I know I sell cheap call here, but I also buy more Jun 900 call to take advantage of low IV environment. What spread will you do?