Search results

  1. M

    Micron Mu i don't get it?

    It's not about how the company is doing, it's all about what the market expects vs. what the company reports. The market price is based on expectations so when those are not met the stock is re-valued. Now, whether the new price is fair or not is up to you to decide and then make appropriate...
  2. M

    Best mainstream broker for options?

    I doubt anyone can beat Thinkorswim when it comes to options.
  3. M

    Option Arb

    Yeah, that doesn't sound like arbing, more like scalping.
  4. M

    Option Arb

    You can't have orders on both sides of the market, unless you are a market maker. How did you do it?
  5. M

    Option Arb

    Just because they teach it doesn't mean you can profit from it! Synthetics are the key to successful options trading. You need to understand synthetic relationships, but, once again, it doesn't mean you can make arbitrage profits. Occassionally, if, and that's a big "if", you're quick enough...
  6. M

    Option Arb

    No, a retail trader sitting in front of the screen has no chance of making any arb trades as he/she is disadvantaged by slower speed of execution and the bid ask spread. Arbing is the domain of market makers and institutions.
  7. M

    Is 2k enough cap to start trading with warrants?

    With futures, stocks and FX it is straightforward - you either buy or sell - if the instrument moves your way you make money, if it moves against you you lose money and if it doesn't move you breakeven. With options you can be dead right on the direction and still lose money.
  8. M

    Is 2k enough cap to start trading with warrants?

    Cheap's not always the best and warrants/options are not the easiest instruments to trade. In fact, trading any instrument is hard, and unless you have a very good background in options it is extremely hard to make money with them. Anyway, as you said, you won't know unless you try so try and...
  9. M

    Is 2k enough cap to start trading with warrants?

    True, intraday, time decay is not an issue, it can be though if you hold for a few hours going into long weekend. And, yeah, the risk management principles are the same. Once again, the biggest obstacle is relatively low liquidity and wide bid/ask spreads. If you plan on trading indices then...
  10. M

    Is 2k enough cap to start trading with warrants?

    OK then. Still a tough goal to achieve, but as you said, you won't know for sure unless you try it. So find your edge, if you don't have it yet, and then go for it. There's nothing to comment on, really, as you haven't provided any in-depth info on your strategy, but I'm sure you don't wanna...
  11. M

    Options simulation website or free software?

    You can do virtually everything in TOS on Analyze tab. Anything that can't be done directly can be achieved with a little imagination (i.e. creative use of existing tools).
  12. M

    Is 2k enough cap to start trading with warrants?

    That's it right there: Try it and see for yourself! 5% per day is a lot, doing that day in day out is impossible. Granted, it may be possible with a low capital base, but as your capital grows it'll be harder and harder to reach those 5% per day. 5% per day is 21,862,578% per year...
  13. M

    Newbie Question: Married Puts aka Covered Puts

    Mysticman, As Eliot points out, I simply use the 5.25% interest rate and the current stock price (76.98*0.0525*474/360). My calculation may not be exactly right as the 5.25% interest rate may not be the best estimate for the next 474 days, but it is a good proxy. It doesn't matter, which...
  14. M

    Is 2k enough cap to start trading with warrants?

    Leverge works both ways! Generally, options/warrants are not the best daytrading vehicles as the liquidity is lower and thus bid-ask spreads are usually wider than in underlying stocks.
  15. M

    Newbie Question: Married Puts aka Covered Puts

    Long stock and long 100 put is synthetic 100 call. Given that the stock is at 76.98 right now, this would be an OTM call. If you short a shorter-term 80 call then you would create a diagonal spread and your sweet spot would be at the short call's strike. By the way, the most you can lose is...
  16. M

    Simple ?

    indeed, depends on your broker. Some have $500 daytrade margins. Overnight margin is $3,938. So, if you broker offers $500 day, then you can have 8 contracts as a day trade, but only 1 overnight.
  17. M

    Simple ?

    No, the margin on e-mini S&P 500 is $3,938.
  18. M

    Simple ?

    You buy at current market price, you can look up the delayed quotes on the front page of CME. For realt time quotes you'll need an access to real time data. At the moment, E-mini S&P500 is 1346.
  19. M

    Simple ?

    click here for contract specs
  20. M

    Simple ?

    Since you don't specify, which e-mini, look it up yourself: CME CBOT NYMEX
Back
Top