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Achtung panzerman! :D There is no attachment.

Yes, it's fubar. The fact that interest rates did plunge during the trade does not change the fact that it was a lottery ticket event - it was late 2008 after all. That's what caught my eye. Their website provides the example from last period where interest rates were high enough to make...

Yes, it was. rew, I get your point and during my early years I preferred debit VERTICAL :D spreads for that reason. But generally, there's no difference between the two equivalent spreads in regards to costs or R/R - at least at the brokers I've looked at. Using the same strikes and...

Yes, or an increase in IV, a higher than expected div. or a steep drop in interest rates could contribute to a potential profit here. Note that this was written in early Aug. 2008 so that expiry is over 3 months away. The div. paid at the end of OCT. well over 2 months The 3mo. t-bill...

Why?

The BE is based on expiry values - options trading at parity - no time value. Those are bucket shop options, aren't they? I'd say liquidity risk is a factor - the shop sets the B/A - no other market participants, correct? If you plan on hedging/closing solely with the UL - then not a...

I looked through OP's link trying to find the fine print. Nothing. It's there - probably in the appllication process. Their data and misc. fees don't look very good. Every time I look into other brokers, I find that IB is still the best for me. I have a backup broker, but I'm not...

I can also demonstrate that. It's all in my "The Secrets of Conversions," by donnap. Only $29.95.

Hmmm...let's see - what's wrong with those closing numbers? Bull Credit PUT spread buy the 525 at $5.70 sell the 520 at $8.30

Yes, comms are all over the place. It's funny, I don't like the higher ones, but I don't question the low ones:p Gotta like the low overall ave. comms. these days. Perhaps part of the answer lies in the exchange that the order is executed on. They don't all participate in liquidity...

I don't pay as much attention to routing issues as I used to because I mainly trade very liquid options. IB has the discretion to route orders to the exchanges that give them the lowest cost of execution in the event of NBBO "tie." They take in to consideration order flow pmts and liquidity...

The cost is ultimately passed on to the other customer in the form of higher comms and fees.

oxymoron

I've seen this answer many times. Option pricing is based on certain assumptions that don't apply to retail traders. We all have our own cost of carry. It's not practical to apply it in most situations for the average retail.

ivolatility basic calculator gives the i rates used in their calcs. I don't know if those are the rates that you should be using.

LOL, good post. Plus, it's really cool to tell your friends that you're trading IRON CONDORS - as if you're really smart or something.:)

JW, recently there was a thread where the OP complained that so many replies are,"you shouldn't do that." You don't have to agree with anyone telling you not to try something. There are many different trading styles and sometimes posters get that mixed up with what is feasible and what...

Really? Not seeing the problems? Try testing in market conditions other than present conditions. Let's see, randomly picking a year, how about 2008.:p Also, reverse gamma scalp hedging or hedging any short premium with the UL is always a tough trade - risk mitigation is difficult when...

LOL - I remember reading some of your posts a decade ago about a few of those judgments. Now I can say "a funny thing happened on the road to riches" many times over. Someone once said - I don't want to learn any lessons today - just make some money.:D

Yes, sad but true, young Spindro. Perhaps, with just a little more experience, you'll understand this. :)