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Easily one of the most intelligent threads on ET: http://www.elitetrader.com/vb/showthread.php?s=&threadid=62388&highlight=bond+rally

If your strategy requires so little slippage that a "tick or two" kills you, this may not be an appropriate strategy for online trading. Slippage is, unfortunately, a universal constant in the online markets.

Interest earned from IB is fantastic--none of my other brokers paid interest, or paid more than a tiny amount. Man Financial seemed to invent a new fee per week. They refused to send me a schedule of their fees either. IB is about as open as a broker can be. There are no "hidden fees"...

Your missing the most important element of Options: Gamma. :-) The position you're putting on is only delta neutral at exactly the price you purchased the combination at on exactly today. Once the stock moves, time passes, or IV changes your delta will get more heavily skewed by gamma (and...

Geee, Not to be too picky, but you posted this article, again without attribution, in the cotton thread a week ago. 1) Attribute your stories 2) Post links if possible 3) Try not to post the same article in response to multiple threads.

I'm suspicious of any bull move where the old crop underperforms the new crop. Look at +Jul-Dec. Still, the fundamentals for corn are fabulous.

They need to have at least the dividend amount in time value, or else you're guaranteed to be exercised. Your margin issue is an interesting one, but what happens if you get assigned. Even if your broker will make the SPX/SPY margin free (which won't happen), you may suddenly need margin on...

Think about this from the other side of your transaction. Lets use your values for SPY: Sell 10 SPY (142.28) Dec 09 190 puts at 47.80 So, you're the guy who bought these SPY puts for essentially $.08. The next dividend coming up for SPY is in March and will likely be about $.55. After...

I guess my point is, how would you know? If their model were broken (which seems highly unlikely), it will be reporting a broken IV. If you plug that broken IV back into the broken model, it will almost certainly return the price it computed the IV from in the first place. Make sure you're...

Then go for it! We've already told you why theres a price discrepancy. Dec '07 XEO 740 put: 60.40/62.70 Dec '07 OEX 740 put: 75.30/77.30 This is not $15 of free money. OEX right now is at 663.83. Note the XEO options are pricing the index at 680 to 678. Something to think about--if...

What does "accurate" mean? Do you mean if you plug in the IV (computed from the price at which the market is currently trading), will it return the price at which the market is currently trading? Do you mean will it successfully predict the correct theoretical value of an option even when...

Buying in in the money straddle will bias your deltas towards the "more expensive side" as you said. To stay delta neutral, you could put on a strangle. Say a stock is at 52.50, you could buy the 50 put and the 55 call. Try buying it as a combo. You may get a better fill.

I left due to: 1) Lousy interest on cash balances (1.5% or thereabouts) 2) Inability to manage a portfolio of positions intelligently. 3) I was encouraged by several of their reps (both sales and support) to lie about my experience to be approved for trading certain markets. 4) Higher option...

Do your homework and report back--look at how much a Dec '07 ITM call cost both for SPX and SPY a few years back and see what it's worth today. I mean, there's a simple way to answer to your question definitively. You could also compare OEX and XEO options to see if the difference between...

Remember that SPY pays dividends on the first 15th of each quarter. The relationship between SPX and SPY is therefore dependent upon where in the cycle of dividends we currently are. A quick spread chart of SPX vs 10SPY will show you the quarterly tendencies. You'll have to account for one...

http://www.opentick.com/

Always start with WASDE for fundamental information. http://www.usda.gov/oce/commodity/wasde/ It includes such tidbits as: "Exports are lowered 300,000 bales to 15.7 million, due to the continued sluggish pace of export sales and shipments and a significant reduction in the import...

Down would be worse because IV would rise substantially. The biggest guess is what IV will do. In Oct '89, it doubled on the first bad day, tripled on the second. Current IV for ES on those puts, at least, is around 15%. So, let's assume it jumps to 30% A move to 1382 with the IV jump would...

Can you do a synthetic long option position? Buy an at-the-money call, sell an at-the-money put?

Watch the Dan Sheridan series of webcasts (CBOE has them). He devotes 60-80% of his portfolio to "income" techniques and discusses each of them at length. I liked the Option Selling book the previous poster referred to, but it's just too simplistic. Sheridan promotes always being covered...