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Things to throw into the mix when comparing execution costs: Ticket charges per spread vs. contracts. Cancel/replace charges for orders. Read that small print. Ability to split your spread order across exchanges to get NBBO on all legs. Negotiability e.g. I've lost count of the...

Oh, where to start....at Starbucks on PDA - mini-keyboard will make my response briefer than normal... ToS allegedly will attempt to cross-match customer orders before routing elsewhere. If you can find an opposing order on thinkspreads then you might be in luck. The thing to bear in mind...

50 day MA or 20 day MA? Either way, should be another exciting month!

Dude, you realise you can edit your posts after you've sent it out into the ether? It's all like hi-tech and stuff. Superb for revisionist historians like me. I do it all the time, you should see the nonsense I write the first time around.

Good call :D

For anyone interested: Phil seems to never tire of answering the same questions over and over and over and over and over again...is that why this journal is the longest on ET? Hmmm....food for thought. Anyway, I'm not berating anyone for asking this question :) There is no such thing as a...

Andy, That would be telling :D Actually, I lied. I do have a little QQQQ diagonal left over that has been going since September lol. Last month for it is Jan and rolled into a bear call vert a few days ago. Other than that and some other minor positions, I'm pretty flat. I don't want...

I have no idea either. I've learnt it's best to ignore most of what I say! Basically, with options closer to exp. they become more sensitive to theta/gamma as we all know. Further out and vega is more dominant. So, if you are holding only for the first 30 days, you haven't given it a chance for...

Ok, got it. You'd be rolling into the synthetic call for less than fair value of the real call (ES option) at the time. Not sure how you're going to deal with the differences between ES and SPX cash to make this work though.... Momoney.

Yes but can you go twice as far OTM? When you're that far out (in time), I would suggest it's more of a vega play. VIX is now 10.18! It is likely you will be hurt by vega even ignoring delta. Are you planning on holding for only 30 days? In which case the positions will not gain much from...

Just curious, why would you consider the synthetic over the natural unless prices were significantly different? You have two transaction costs in the synthetic call you cited for example. I could certainly see converting an existing position into a synthetic based on what market conditions...

Just a general comment: I think each person has his/her own style/approach and one can make things as complicated or as simple as desired. However, one thing is for certain: more complicated does not mean more profitable. Basing strike selection on implied future market distribution...

I know, I was thinking of you when I wrote that LOL...but didn't name you in case I got my head bitten off. Btw, good job. Momoney.

LMAO. Nicely put. When is a hedge not a hedge? When it makes more money than what it's hedging, in which case, what it's hedging is actually the hedge for your hedge. [EDIT] Another pointless post from Momoney, enjoy :)

I'm genuinely sorry to hear that. Did they start out as close to the money spreads? This is a big difference. I think position sizing is also key with NTM/ATM spreads and having as little time as possible to be wrong when you are short curvature/gamma - in this instance 3 days. Hope you are...

IMHO, That's not as ridiculous as it sounds. I personally wouldn't take it because it doesn't fit my entry criteria. However, because it is NTM, if the index moves against it, it won't lose money as quickly as you might think. Theta is around 18 and Delta is 19 for this spread. It's...

I'm sure there is more fun to come for the week or even last hour of the day - that's about as close to a prediction as you'll ever get from me lol. I'm still long delta/short vega on XEO so today's movement SO FAR is quite appreciated. Momoney.

Doh! Have no idea what I was thinking. It was early in the morning :eek: OK. Will try and see how this works. OK. Noted. Before I go off and research, can you recommend any good sources for historical FX data? Got it. Yes but I'm lazy to even fill in a spreadsheet. Always...

Unfortunately, I have found this method to be fairly inaccurate for SPX options on the Thursday before exp. though that was a while ago and can't remember the details. So as to get a more accurate picture, might be worth purchasing actual historical option price data e.g. from here...

ElectricSavant, Thank you for the generous contributions. I am extremely intrigued. You seem to want to keep the thread on-topic for teaching beginners with this concept. So! As someone who knows absolutely nothing about FX, allow me to ask some completely newbie questions that might serve...