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The guys mentioned-Jobs and Gates had thousands of hours of programming behind them giving them the intellectual tools to succeed not to mention serendipitous period in which they were born that gave them tremendous tailwinds on their way to billions. Furthermore, for every millionaire w/o a...

1 thing that might not be good with eoption though (I think ) is if you have a 1 x 1 vertical spread, you will get charged their ticket charge of $3 for each leg which means 3.1 for the buy and another 3.1 for the sell vs. IB of 70 cents for 2 contracts which brings it up to $2 with their...

You have to be good at judging price distribution of the stock and not neccesarily direction to have a good chance of making it in options. Even neutral stats like flies requires some competency in discerning distro of the stock since a good writer will write after the explosive move into a...

this position is most likely a short fly where the wings were legged into @ good prices due to delta or vega exposure. IOW, position could initially have been a long ATm straddle with the wings sold when the stock moves up or downthe line or wings sold after an IV explosion. Hence there is very...

is correct and the reason why it might be a little below or above the pnl line is if the traders legs into the final position proposed by MTe. Sometimes trader thinks he can buy an extra wing and then scalp the wing in and out as stock moves. If trader does a good job that entire graph is above...

probably will work but be very slim since you also have to consider the laying out of the money for the deep ITM put which will eat up your cash available for margin.

I would bet that the weeklies have a slightly lower IV than the monthly since the crowded trade would be to buy the monthly and sell the weeklies. Much like the manner in which the call skew is flat or down attributable to the buy write crowd in a stock. Previous poster pretty much sums it...

the put vs call verticals would be very close , close enough to be untradable in terms of locking in meaningful profit once commissions and bid/ask spread and execution risk are factored in. The differrence could be attributed to interest rate, dividends and short stock rebate since that messes...

U know what i would do if u are really concerned about a poss bust? I would buy a jun 32 straddle , sell jazz to take profit. If u do not hear from your broker next 2 days, trade probably stands. At this point get rid of your straddle insurance, lose a little /maybe make a little in case...

should really meet more people. Credit and debit spreads are similar. Buying call vert is same as selling put vertical. I said similar not the same, the subtle difference is inthe risk reward and the gamma esp near expiration.

Double the margin at the NYMEx. Bet you oil goes much lower w/o killing its price discovery role which is critical in a free economy.

his later books other than the 1st-options as a strategic investment deals with scalping gammas in greater detail thru use of options with underlying and the +- of each approach. There are tons of articles on the web about gamma scalping as well.

means buying the offer and selling the bid.

Are there cancel fees for canceling or modifying Us equity option spreads ?(still waiting for IB's response to my email) I got this from the website as a footnote in their fees schedule. I am a little confused w/ the wording . "Neither cancel/modify fees nor execution credits are not...

Hi atticus, wondering if you'd be nice enough to clarify this part of your post in the Howard journal. When you say buy the fly and the calendar wouldn't that end up with a mix month fly so if XYZ is at 50 and you are bullish on stock, you'd buy a... +1 Jan 55c / -2 Jan 60c / +1 Feb 65 c...

Get a couple of good options books by Natenberg then Cottle. Create your own Excel simulator using the tools from Peter Hoadley. Go to ThinkorSwim, and find the way to use their on demand feature which is an option tic by tic simulator. Put on fake trades paying special attention to how...

The method of calculating marks alone whether the model keys off of bid/.ask or mid on a multi legged spread is enough to + - your model significantly.

I guess it is possible if you leg into them. I.e. away flies cost less than atm flies so u could put on an away fly, stock goes there, put on the other side cheap, until u leg into a multi legged fly for very cheap . Generally, you have to take some kind of greek risk to leg into these...

I guess you can sell a front month put and short stock to create a front month short and buy the back month call making the entire package a credit BUT there is probably little or no edge to it unless the put/call parity is off for some strange reason.

That spread he is talking about is probably a backspread in the front month done for a credit where if you are wrong on the mkt direction, you could keep the credit. BUT as it gets closer to expiration, that b/s moving towards your long OTM strikes will kill you. So yes, in theory you can have a...