Search results

Hi Y'all, Does anyone sell puts on SVXY? If so, what entry/exit rules do you use? I've been thinking about it for a while and it seems to be a decent strategy given an (almost) persistent contango in VIX futures. However, I am not sure when to enter such a trade and at what strike. One...

Hi Y'all, In theory put calendar and call calendar on the same strike and expiration should trade at the same price. However, in practice it is not the same. The difference is sometimes significant (5-10% of the spread value). Therefore, the question is: if there is such a difference...

Nobody is using eOption?

Does anyone have any experience with eOption.com? Their commissions are good ($3+.10/contract for each leg) but they have some extra fees (paper statements, inactivity, etc.) and I wonder if these fees are avoidable. How does it compare with other broker in terms of trade execution? If...

I discarded this strategy a long time ago. However, the is a monthly Iron 'Fly strategy that has worked some 35 out of 36 times averaging 10% gains vs one 30% loss.

If the stock is at 30, then 25 put/35 call strangle has the same time value as 25 call/35 put strangle. E.g. if 25P/35C is worth $1 then 25C/35P is worth $11. At the expiration the OTM strangle will be worth $0 and ITM strangle will be at $10 provided that the stock stays in the 25-35 range...

Buying ITM strangle is the same from risk stand point as buying OTM strangle with the same strikes. However, in case of ITM one may think that the potential loss is smaller if that loss is measured against the intrinsic value of the strangle. This is a strategy advocated by one Terry Allen...

Ok, I guess I am not the first one who came up with this cute idea. Thank you, everyone. Case closed.

So, what exactly may happen? Early exercise of the short call/put? How early? BTW, SPX options do not have this disparity.

What about this particular box? 17c is 3.4% of $5. There are ~45 days till March expiration. Is this a true risk-free rate or are there some hidden risks? Correction: I did not see the dividends posts above. With that in mind, when can an early exercise happen and under what conditions?

Here is a possible box spread (attached) It can be sold for 5.17 while its intrinsic value is 5.

Normally a difference in price between a put and a call for the same strike should be the the difference between the spot price and the strike: C-P = Strike-Spot However for Mar'13 expiration I see the following prices for SPY options at 146 strike: Put: 1.49/1.50 Call: 5.30/5.33...

I guess the OP asked about a way to pull the quotes automatically or do some sort of batch processing.

Here is one possible source: http://query.yahooapis.com/v1/public/yql?q=SELECT%20*%20FROM%20yahoo.finance.options%20WHERE%20symbol%3D%27AAPL%27%20and%20expiration=%272013-01-11%27&format=xml&diagnostics=true&env=store%3A%2F%2Fdatatables.org%2Falltableswithkeys I am not sure how accurate it...

It is possible but not likely. Your ABC stock must stay at a certain price level at the expiration time and not move far from that level either way. So, yes, if you find a stock that can cross that same price 12 times a year at exact days you could make your numbers.

Why? Even if both puts expire I get to keep .14 credit.

As of this writing: VXX 28 put is .52 (loss (1.58-0.52)*2 =2 .12) VIX 16 put is .40 (gain (1.10-0.40)*3 = 2.10) Total: loss .02

This is the worst reason to get into options. Simply buying calls and puts in anticipation of a stock move is the surest way to destroy your account. Do yourself a favor and read some thick books on options and options strategies before trading them. I can recommend McMillan's "Options as a...

Opened another position: Long 2 VXX Jan13 28 put @1.58 Short 3 VIX Jan13 16 put @1.10 Total credit 1.10*2 - 1.58*3 = 0.14 Same assumptions as in the last month: VIX stays above 16 while VXX keeps moving down.

The positions I closed were on paper. I am thinking of going real for the next round.