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I picked up a bunch of ES December 2550 puts this afternoon. I'll put them away in my time capsule and dig them out in a month.

RM nailed it. As a Canadian, I don't get PM so returns based on margin for different investors are comparing apples and oranges. The key to me is theta relative to net liq while keeping an appropriate negative delta in relation to theta.

That's right. Pekelo got the arb before the computers. Only on ET. Legging into an IC doesn't count.

There's not enough information here. To effectively trade options, you must have a view of the probability distribution of the underlying within the given time period. A key element of the distribution is its kurtosis. If your view of the distribution has a positive kurtosis (tighter range)...

I've held this since it was 5-figures. I'll go to the grave with it in my estate.

Vol in AAPL hasn't been too bad the past couple of weeks (relative to the past year anyways).

I was already short premium going into today (October monthly), but added a short 160/162.5 September 15 strangle for a credit of $3.11 as I felt the premium was a little rich.

I did something similar. Sold the October 155/165 strangle for $4.33 going into the weekend.

2 contracts with $3600 is pure insanity. I would suggest bringing it down to 1 or better yet, switching to USO.

The objective is to constrain P(r,0 to 1) to less than 57 given the above parameters so that P(net,0 to 1) < 0. I can't find the necessary constraints (ie. not enough info), therefore I get multiple solution sets with P(r,0 to 1) equal to or greater than 57. Please let me know if you can find...

LOL. Pekelo--you're the last person that would understand it, but for the sake of others here is a possible scenario. 0 = time just prior to subject period 1 = time at end of subject period P(r) = realized profit P(u) = unrealized profit NAV = net asset value HWM = high water mark...

Another uninformed comment. For example, one could have a long/short straddle. After a move in the underlying you could either roll up or down the call or put if your objective is to neutralize delta. Both achieve the same change in Greeks but one would realize a gain while the other would...

It appears MTM is an election. But I'm Canadian, so what do I know? https://www2.deloitte.com/content/dam/Deloitte/us/Documents/financial-services/us-fsi-475-revocation-alert-final-040815.pdf

See post #64. Hiding losses is certainly a motivation. But it's not the only motivation.

These are the variables I've played with to change the net profitability outcome. Realized P/L Unrealized P/L going into subject period HWM going into subject period I could go into detail on the various scenarios, but I think that would confuse the masses. I urge you to try for yourselves by...

I haven't seen a reference to a net number but I'd be happy for someone to point it out to me. However, everyone seems to reference the unrealized number which is only half the story. I'm trying to be objective by drawing a conclusion with the information provided. So far, the information...

I don't know what the financial media is printing, but a $50 million unrealized loss doesn't mean the fund lost money on a net basis. I don't know how many times I have to explain this so perhaps I'll try another approach. My overall P/L is positive for the year, however my unrealized P/L is...

We don't know that. Not enough info. What we do know is that the claim essentially confirms a legitimate profit (and the establishment of a new HWM) during the period in question via para 90 by including the words "most of the...". The legitimate HWM could have been established early on in...

I agree with your premise. However, good faith is a very tough argument. Also, what takes precedence? Good faith and proper intent or the words of an agreement. I think it's akin to statutory interpretation. If the words provide clear boundaries, there is no reason to go into the intent of...

Congrats! Would you like a chocolate chip or peanut butter cookie?