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Yes.

Not exactly, as they have slightly different underlyings, but, yes, 1 SPX option is equivalent to 2 ES options.

syswizard, There are significant differences between ETF and index options, besides potentially different tax treatment. First of all, ETFs have smaller values thus making the options more affordable to the "small" trader. Second, ETF options are american-style, which can be an advantage or a...

Again depends on which options you're talking about. SPX index options are cash-settled and when you exercise you just get the amount the option is ITM in cash. Options on S&P futures (big contract and e-mini) can be either, depending on expiration month. Quarterlies expire into cash, so...

Depends on which options you're talking about. SPX index options, which trade on CBOE have a multiplier of 100. Options on the big S&P 500 futures have a multiplier of 250 because one options contract is for 1 futures contract which has a multiplier of 250. E-mini S&P 500 futures options have a...

Not true, a contract has a buyer and a seller, so an increase in open interest in calls doesn't mean an increase in long positions. It just means new positions were open. The "initiator" could had been buying or selling.

Yucca, You don't need a PhD in maths or to even read Cottle's book to understand the basics of option pricing. In order to understand that option prices imply only a range and not direction all you need to understand is the Put-Call Parity. Here's a quick summary of the put-call parity...

Yucca, It's not about shuting you up, but you're not even trying to educate yourself on the subject.

Yucca, Don't talk about stuff you don't understand! Option prices imply a range of prices, never direction!

Some brokers, mainly those who do NOT specialize in options, require margin on both sides of an iron condor, which doesn't make sense, but you can't really do anything except for using a different broker for your option trades.

A flaw...the most basic "flaw" is the constant volatility assumption, i.e. modelling based on the assumption that the volatility will not change. Anyway, I can't really say much without knowing what sort of a position it is and what you are trying to model.

The differences between various theoretical models are minor, it is the inputs that determine the output. As I said in a previous post, theoretical projections are based on certain assumptions and when those assumptions turn out to be wrong the projections are off. Don't try to find a flaw in...

Why is calculating IV first such a problem?

A model is just a model. The numbers that come from a model are correct, but it's not the model that determines what the position will be worth tomorrow, but what the input variables will be. So if the volatility changed then so will the option values. In other words, if you model under constant...

The margin requirement on the iron condor, assuming Reg T margining (i.e. not options on futures), is the difference between the short and the long strike on the same side. That is if the difference is the same on both sides, of not then the larger one is taken. In other words, yes, the...

Oh boy! You know what, next time just take your time to prepare a response cause this quick one really sucks, even better go read a book before responding. It's just goes to show that you don't know sh*t about options, markets or trading in general. Anyway, who am I to judge your methods...

yucca_mtn, Pick up a book on options and look up Put-Call Parity and Box Spread. The options world will become a brighter place for you! Right now, all you arguments sound like this: "I don't care if it is easier to drive the car forward, I've been driving it in reverse over the past year...

The only assumption I made is that of your account size and it was a false one, I admit. Still, the point remains, OTM have better liquidity than ITM options. The other point I made, as pointed out by MajorUrsa, is that you cannot conclude the long term profitability of a bullishly biased...

Don't mistake bull market for knowledge/edge. Just because your bullish strategy worked in a bull market doesn't make you a profitable trader over the long run! This is probably the most competitve business in the world, so in order to have any chance of success you cannot afford to be sloppy...

Basically, it's a synthetic call diagonal spread, with more commissions.