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The swap is built into the price of the option too. No such thing as a free lunch. You dont have to take a lone, you just need to be long yen and hedge the delta risk another way.

The market making business is not all that great these days. Unless you have solid deals in place for payment for order flow and things of that sort you're way behind the curve. The fixed costs these days have gone through the roof too. Hardware, software, data vendors, seat leases and the...

As nitro said ... it does not matter who you sold them to, heck they might have covered them already. All that matters is the OCC will still guarantee them and they do, you're in the money gongratz

Its not once in a lifetime. Those dates that I mentioned all had settlement values significantly above the high print on the screen and the opening prints you see.

Rubbish, you think like a dead pan retail investor. The majority of those puts are protecting long underlyings and the managers who bot them are happier if their longs do better

Today was not once in a lifetime, but it was a huge settlement. Nov 05 was a big one too 53 points if I recall correctly from the previous nights close. Aug 07 too was a nasty one. Shocked that one who trades the SPX is not aWARE OF SETTLEMENT

It wont effect the price of the call at all since call / put parity is a given

Well said opt. As usual this topic has been talked to death here for a long time. Trying to give an objective answer in defining a subjective phrase is ridiculous.

Dmo... as usual with your posts IMHO that’s an excellent post on just about the only reasonable definition on how a strike may be over priced. As has been mentioned, calls and puts of the same strike are exactly the same option other then delta. c.chugani... long a call or long a put is...

How played out is dispersion these days? LOL

Atti, dd is just a new name on an old character here?

Thanks we cleared that up already, I knew you could not resist LOL

You sure its 4 people and not fewer with more then one screen name. Some people find they need the attention of total strangers in the vasty anonymity of the internet, their weak character and fragile egos makes them do some entertaining things.

What a hysterical thread, I am sorry i didnt read it until now. I have seen the same sort of thread on ET a few times during the course of my membership here. Very entertaining stuff! Keep on sellin that cheap stuff, it can never hurt you!!! LOL

6 required parameters . Price of underlying Strike Price Call/Put Days till exp ( subtract one for tomorrow ) Implied volatility Risk Free Rate That will still only give you an estimate of one days theta since those variables for the most part are constantly in flux

If a stock was going X div today you needed to own it before the close today or have exercised your calls today. Tomorrow, or in after hours today the stock will typically drop by approx the amount of the div. Afterhours today is really tomorrows date.

You can purchase the stock on the day the stock goes X and still get the div. Just realize that its not like getting a free lunch and as soon as the bell rings on x div day the stock will fall.

As long as you exercise on X div day you're good. You should realize that the capture play I described will not really work for a retail trader.

if you're just wanting to use options to replicate long or short stock you might consider conversions and reversals. yes you'll give away some edge to the market and yes that involves two legs so your comish may be a bit more but you will capture the whole move in the stock for or against you...

Awe shucks why so bitter and defensive?