Search results

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    Option arbitrage question

    Only if a broker pays for it!
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    Buy / Write

    OP did a buy write. A bunch of people in typical elite trader fashion shat all over his trade. He, in typical elite trader fashion acted like a know it all douche. I told someone that buywrites are not equivalent to shorting puts when dealing with American options.
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    Buy / Write

    Prop trading got me closer to my goal of either 1. Starting my own fund or 2. Being a truly independent trader. i eventually went to #2 but realized it's not actually that great of a life for a guy in his mid thirties.
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    Buy / Write

    Thanks for the compliment. I was a market maker for several years. In most scenarios they are equivalent. But they aren't strictly so - and that is where trading opportunities may lie (unlike in index options which are European and continuous dividend assumptions basically hold) .
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    Trading for a living....full time....only income

    The ability to do that is part of being a good trader.
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    Anti-Crime Activist Shot Dead Following Thanksgiving Dinner

    What's the real issue?
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    Option arbitrage question

    I have a bunch of steak knives from bobby vans and interestingly I was using one yesterday to cut strawberries for my daughter. When I was a young first year analyst a broker bought our desk lunch and bobby vans sent real steak knives (made of wood and metal). People were going to throw them...
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    Buy / Write

    The put trades at a premium to the call to account for the dividend expectation and both the call and the put will be subject to taxable events. But you knew that right....
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    Trump Tax Reform - a total squeeze on middle class W2 workers

    It's all good as long as a wall is built (even if Mexico doesn't pay for it).
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    Buy / Write

    No difference in expectation. The difference is in path dependency. If the OPs plan hits where he captures the dividend AND gets called away he will do better. If instead he gets called away before the dividend he does worse. Looking at the bid prices: he can make 1.95 in the put vs making .85...
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    Buy / Write

    I didn't say more. I said different.
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    Trading for a living....full time....only income

    That's the judgement that is required to be a good trader.
  13. N

    Buy / Write

    Unlike European options and non-dividend paying underlyings, a short put and buywrite with a dividend paying stock and an American option are not strictly equivalent. You can construct scenarios where one earns more than the other.
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    Racism is nothing but a scam

    Isn't this the exact argument Trump is using to defend discrimination against Muslims? Remember skittles?
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    Buy / Write

    It's unlikely you will earn both the dividend and the capital appreciation through the maturity.
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    Peterffy's worst trade ever?

    I would argue higher property taxes would result in higher property prices. The town in NJ I went to HS in had some of the highest property taxes in the state. It also had some of the highest (and most stable) real estate prices. All those taxes went to town services that people found desirable...
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    Peterffy's worst trade ever?

    And a reduction in investment banking headcount and fewer hedgefunds taking in big fees.
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    'AI Powered ETF' already down 3% vs S&P in less than a month (inception)

    Give it 10,000 hours of screen time. Then it will start making money.
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    Let's run off all the worthwhile posters , asap

    And there are stories of real name trolls driving off anonymous contributors on this site.
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    George Soros’s $18 Billion Tax Shelter The wealthy have tucked billions into private nonprofits—wher

    You can create a foundation on reasonable amounts of money (as little as a million dollars). Vanguard will help you set it up. I agree with your principles. I was only making this statement that while I wouldn't consider Soros to be tax evading, the IKEA Guy clearly is.
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