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well,i built up a couple more thoughts on the subject: first,i dont think,that a quarterly dividend of under 1% can "missprise" a real syntetic with 10-20%......somehow doesnt add up such a theory....... and, because i am a really extreme skepticist,i like to look for way to prove a...

that might explain the "paradox".....looks like i might have been wrong(really dont want to surrender,i cannot find an argument against it) its the dividend,after all,not the IV as i thought...... but still there is a difference:D i ve noticed that,but never knew there is a dividend...

:D

well....i thought that we stopped arguing about this,but looks like not really........ :D first there are some books, writen by "professors"who can not make money on their own ,so they write books....... in these option books is said,that horizontal spreads are syntetic and are the...

OK,let's quit with the arguing and try to make some money.i have something in my head and would like you to tell me what do you think. the strategy is based on gamma scalping ,but trying to reduce time decay+getting a boost from the change in IV. SPX-long futures,long puts,but part of the...

you are right-my mistake.

the moment with the vertical is if you buy it OTM ,than the underline hits one of the strikes of the spread.till that time they apriciate the same.but than if the underline stays several days at this strike,the spread which has the short option at this stike will start being a little more...

you just need a IV spike.even if the market doesnt move,but you have a spike,the OTM spread would cost more,depending of the spike. semisyntetic are syntetics,which have change in just one of the greeks. the same is the verticals-put or call vertical are the same ,right? well,they...

guys,i doubt that in this forum there are people,how doesnt know that this is a syntetic. but is not a pure one,like a conversion or riversal arbitrage as buying covered call,instead of shorting put. this is a semisyntetic and is IV sensative. at first i told you-i dont argue that...

first you are not telling me where are you longs. and then the spread is not DOTM,but more ATM.you can not feel the diference from a IV spike,cause is too close to the underline. put the spread DOTM-let say at 930 strike,and widen the months-september against december...... and if...

bingo-they trade with the same IV,OK. but as you know OTM time spread has 100% extrinsic,and ITM almost 100% intrinsic,right? so the IV change doesnt reflect almost at all at the ITM spread,but does on OTM one. OTM time spead is very sensative to a IV change,the ITM is not...

i play this all the time.because when the oil fall,it is usually supported with widening the contango between the futures,i order from the pits the local to produse me DITM calls,instead of OTM puts,because electonicly you cannot buy them-no liquidity so deep. so i kind of had some...

you are taking me for a spin? you kiding? and i would suggest you read up on vertical and vorizontal IV skews.. and what, let say ,a volatility smile might do to these spreads :D and then we will continue about the put call parity. a begginer would say that these spreads...

is it? why dont you model it,but put different volatility into the model..... even at expiration there might be a difference-at exp. the short ones are at 0 vol-doesnt play any role.......but the longs? you have one OTM put and ITM call..... with a rise in IV ITM call will be the...

just use a calculator. last week,with the fall of S&P from 1011 to 980 within couple days,volatility rose from 24 to 29,which is 20%. so put the numbers in the calculator-a drop of 30 ticks,and change the volatility-once 24,once 29....... and use let say 900 strike of the...

i wasnt talking about currency options,but equity. ussually with a fall you have 90% chance,that IV will rise.why not to use this advantage in you favor? with currency options you are rignt-you cannot predict the change in IV,so it really doesnt matter. but have a look whats...

i dont argue,that they are different....they are the same position. what i was sayng is that they will change a little differently because of the IV. even with a slight move down,supported with a spike in IV with 5%,the profit of OTM put callendar might make 2 times more profit,that the...

yes,at first look they are the same.....syntetics......but if you look deeper,there will be for sure a difference....because of the volatility change. OTM put callendar will gain more than the ITM call during the fall,because most of the time with a fall volat. rises and will apriciate the...

dont forget the plunge protection team-it was made because of the 87 crash. the goverment will step in. dont listen to them,that they dont have such a thing-they do,and if you check up the huge upside moves in november and october last year,when the market was crashing......you will recognize...

for me,the best and the most inexpensive way to hedge against black swan is far OTM horizontal put spread. lets say ES is 900 and you play it neutral to slightly bullish. if you are scared that there might be something cooking,and there a chance ,that ES might drop to next support level...