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Sorry :D European OTM credit spreads are path-independent because it doesn't matter what path the price takes from initiation till expiration - it is only the final price that matters in theory. As we all know, depending on position size and risk/reward, people (partially) hedge, adjust...

AFAIK, the OPRA symbology for SPX options shouldn't have changed from 2001 to date. I may be wrong though. General codes for months, put, calls etc. can be viewed here You'll need to extrapolate for the SPX strikes. HTH. MoMoney.

Tradestation has been promising options on futures via their software for months but have not yet delivered :mad: At the moment, you can only execute via RJO's MCD platform RE: ToS, I'm sure it's only a matter of time before Penson (used by ToS for clearing) are able to support commodities...

Do we have the makings of another Writing Options for a Living thread here? Arnie, if you've spotted an advantage to writing options over buying options, my advice is not to tell anyone :D otherwise everyone will do it and premiums will shrink out of existence :eek:

FWIW, A double no touch is not synonymous with two separate no touches. A path-independent vanilla European credit spread is quite a different animal to a path-dependent discontinuous payoff American binary :confused: LOL An American binary is more of a bet on time. An SPX credit spread is...

Ha! You are persistent, I'll give you that. The answer is no :) I'll refer you to the first sentence of Phil's second ever post on this journal Yes, there was a flurry of posts in reference to Dan Sheridan and the likes of "ears" on iron condors etc. but to be honest I wasn't really paying...

Well I'd like to think that prices could only go down to zero and not lower :eek: So, technically limited reward. That page also says it is volatility neutral which isn't neccessarily true so basically take that piece of $#@% for what it's worth: pretty pictures. Yes it's a directional...

Not defending the practice, but there are "execution credits" that help to offset any cancellation fees: http://www.interactivebrokers.com/en/accounts/fees/otherFees.php?ib_entity=uk#cancel When it comes to fees/charges etc. it appears that IB have not been introduced to KISS. MoMoney.

Yes, but it is factored into the commissions :D

Learning about how SPAN is calculated might be of use: http://www.cme.com/clearing/rmspan/span/compont2480.html You can download the daily SPAN data files from here: http://www.cme.com/ftp.wrap/span/data/ ...but you need to know how to decipher those files and put them to use. You...

Correction: swift adverse moves against naked legs are obviously made worse by movement in IV LOL. ET overload. Apologies.

For anyone having trouble visualizing the expiration risk profile for the short (bear) split-strike combo a.k.a "risk-reversal" Tiny bit of info here Another quick reference to the strategy if you like bright colors and big pictures. Page 22

Yes, unbounded risk just like long/short stock. Margin call implications are similar if over leveraged. Swift adverse moves against naked leg are mitigated somewhat by movement in IV. Not so with long/short stock. Overall, depending on leverage being used can be somewhat tamer than a...

Ahh, you've spotted the minor fly in the ointment - what, no free lunch?! :mad: Yes, margin requirements for short calls on SPX are not insignificant LOL. A more digestible alternative is to use ES options for this play. If not, you have proposed, bear calls to get around Reg-T. However...

Ahem, not Coach but since I'm online... It might help if you just think of it as a split-strike combo/synthetic stock. long combo = long call + short put short combo = short call + long put A true synthetic would be same strikes put and calls and therefore the IV for both options at...

Well, the normal models apply e.g. Black Scholes, Cox Ross Rubinstein etc. However, most places, like OX won't output the probability value from these models. To be honest, the difference between calculated delta and probability is entirely dwarfed by the flaws and assumptions in said models...

You might want to look at opening a paper trading account with Interactive Brokers. MoMoney.

If you use Firefox as your browser, this is a better solution Save pages/snippets, add annotations, highlight sections etc. Organize and categorize. MoMoney.

I suspect there is a typo in your spread. Perhaps you mean 565/560? Anyway, if the mid was at .90 my observation is that you may have been very generous to sell it at .75. It is not uncommon to get filled right at the mid point on XEO spread trades. Certainly shouldn't need to give up...

Both are applicable depending on what you want to know. You can use statistical volatility for calcluating standard deviations for past price action. OR you can use IV for calculating standard deviations for forecasted price action. OR you can use your own guess or model output e.g. GARCH for...