Search results

Almost all spot index options in the US are european style, unless you have a special preference towards options on futures.

The only reason Aussie options have 0.5 increments is because the stock prices are so much lower. You find it difficult to get $1 permium on a $5 spread!?:confused: This is nonsense. The premium depends on a lot of things, as you may be aware, so unless you outline specific spreads or...

I'm sure there are quite a few people here who would be able to help you, but very few may have the book at hand. So if you want an answer then post the question.

Generally, when the market goes down the VIX goes up...

It says right there that VIX is currenlty very cheap. So they mean buying VIX calls, but they advise buying it thru variance swaps rather than options. Google "variance swap" for definition.

A double slingshot makes your broker happy!:D As jj90 pointed out above, it is just 2 flies on both sides with extra wings.

For daytrading...maybe...I don't daytrade it.

Eurodollar is $25 per tick. How's that low!?

Also, SPY is an Exchange-traded fund that is designed to replicate the perfomance of SPX less management fees so the two won't be exactly indentical. XSP is the mini-SPX - i.e. 1/10th the size, with the rest of the contract specs identical to SPX.

You can find the list here on CBOE site.

Essentially, the Jun position is a synthetic short put and Sep position is a synthetic short call. So combined you have a short "calendarized" straddle. Why don't you just plot it out and see where your risk is.

Huh!? You contradict yourself in the same paragraph! Rolling a vertical is essentially closing the existing trade and opening a new trade. Seems like an unnecessary expense, especially when you depend on a big winner, on which you may miss out with a vertical - i.e. you won't be quick enough...

Generally only index options are European style, equity options are American style.

Eurodollar

First of all, SDS doesn't have options. Second, a bear put spread on the SDS means you expect the market to rise further. Third, SPY options are a lot more liquid so even if SDS had them there'd be no point in using them. Fourth, you won't get any replies unless you get more specific...

There's no best style. You may need a stronger stomach for the homerun style, but you can be successful with either one.

I agree with bigbiscuit. This is a very broad topic to give you any specific answer.

For equity options the automatic exercise threshold used to be $0.75. It has been reduced to $0.25 a few years ago. Now it's down to $0.05 ($0.01 for index options). If the option is ITM, but below the automatic exercise threshold and you do not exercise it manually then it expires...

Pin risk is not an issue for a cash-settled option cause you got no underlying to worry about if assigned.

This thread has over 150 replies yet it hasn't moved one bit from the opening "argument", so to speak. You ask for guidance yet you refuse to listen to others continously referring back to your experts. Why don't you just pick a side and move on to making money trading!?