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I suggest you read what I said again and really stop and think about it.

As discussed in the other Karen thread, I don't think we have enough information to say that she made or lost money for her investors one way or the other. https://www.elitetrader.com/et/threads/karen-the-supertrader-tastytrade-hybrid-experiment.300013/page-89 The claim is that she unlawfully...

You could use inverse ETFs such as SH or PSQ.

Yeah, it is a big debit. I added contracts on the short side to reduce the debit and delta. Sold 1.3 fronts for each back.

Actually, one would be LONG the embedded front-month put spread within the diagonal. For example, I opened up a bearish diagonal in MCD (X=159) yesterday given my bearish view and low IV. +October 160 put -September 155 put To convert a 160 calendar into the diagonal, one would have to buy...

But vol isn't as important wrt the short put spread if the strikes are equi-distant from the current underlying. Skew in a long put spread would typically be favourable for traditionally skewed equity underlyings.

Why not both? If I have a bearish view and vol is cheap, I like using put diagonals with the nearer term put having a lower strike.

Woot! Made 10.99% playing baccarat. Did a nice job cutting losses. I didn't stay on the bank run while it was going good. Could have made a lot more profit but stopped betting the bank way too early. Scared to lose money so trying to play it safe. Kidding aside, you should focus on the...

Sold Sept 330/365 strangle post earnings. Didn't like the run up prior to today but I'm pretty comfortable with these strikes after today.

Mother of pearl. It was only one day. What happens, not if, but when the 1% turns into 5%, 10%, 20%? Can you stomach that? If not, you have to re-evaluate your size. I'm not saying this is the top. But there will be a correction of a large magnitude some time in the future and you have to be...

Meh. If you can, I would try to transfer from Schulich to Rotman. Reputationally, UofT is much superior to York and degrees between the two are like night and day in industry. Unless you really must observe the Jewish holidays at York (do they still do that?).

Pullback?

Yes--that's what I said in the second post of this thread. The premium remaining in the calls can be approximated by the put value. What I'm objecting to is your notion that calls would reduce by the dividend amount following x-div.

Umm...where exactly is the arb in this example?

Not my favourite source to quote but this may help. http://www.investopedia.com/articles/active-trading/090115/understanding-how-dividends-affect-option-prices.asp

What does the remaining time value have to do with the dividend? Why would the calls drop in value by the dividend when holders of the calls do not receive dividends? They do not, therefore if there is an automatic drop in the calls x-div there would be free money. I encourage you to look at...

This is false. The calls would already be discounted by the dividend prior to x-div.

The options already reflect the value of the dividend. However, look at the value of the puts. If the puts are less than the dividend, it may be worthwhile to purchase the puts and exercise the calls to capture the dividend.

Depends on each security which is a function of when the series was issued, the next reset date and the credit worthiness of the counterparty. Canadian pref ETFs are highly weighted with these rate reset instruments so the yield (4.4%) on an ETF might be a close proxy...

These are preferred shares which reset their coupons on a fixed interval (as outlined in the series prospectus) at the 5-year Bank of Canada rate plus a fixed premium. There are periodic and predetermined reset dates. So if a security had a reset date of July 31, 2018, the coupon would be...