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The point I was trying to make is that maybe the OP entered the trade price incorrectly on one of the spreads hence it looked as if the two spreads have different risk/reward ratios.

Not that I'm aware of.

xflat, You haven't visited the daily hottie thread yet!?:confused: Here you go Daily Hottie.

You can trade weeklies with any broker that gives options access. Australia has daily options, for more details check asx.com. There no daily options in the US, at least not yet.

Actually you are the one arguing about semantics. The point is, the two spreads the OP is asking about are synthetic equivalents so they are identical in every respect. However, usually the OTM options have slightly tighter bid/ask spreads so you may be able to get a slightly better fill (a...

The guy can't decide between a bear call spread and a bear put spread so you answer doesn't really help. :)

Irrespective of the premiums the OP has in the screenshot, a short call spread and a long put spread (and vice versa) at the same pair of strikes have exactly the same payoff, and exactly the same greeks, so it makes absolutely no difference which one you trade. The OP has probably made a...

It doesn't matter as the two spreads are synthetically equivalent. However, generally, it's preferable to trade the OTM one as you may be able to get a slightly better fill.

QQQQ is roughly 1/40th the size of the NDX so you need 40 QQQQ options for every 1 NDX option. This also applies to the greeks.

I can't speak specifically about Optionvue, but usually the probabilities in these type of analysis software are calculated using the normal probability density function so I would say that this calculation definitely does NOT replace backtesting.

I don't trade them, but those are among the most liquid options in the world.

The last 4 months have pretty much been a seller's dream so I wouldn't be too confident in my ability based on the results in this time period. In other words, as it has been suggested above, you should backtest your strategy.

Obama confusion is good for option sellers.

Martingale works if you have unlimited capital, otherwise don't do it.

A platform, as it has been mentioned above, is the software that you use to send orders to your broker. Brokers usually provide their own platforms that can only be used to submit orders to them. On the other hand, there are independent platforms (aka multi-broker or broker-neutral) that can...

LTCM blew up because they were overleveraged.

There are no hard and fast rules. The further OTM you go the greater the reward relative to risk, however the probability of the stock reaching that level is lower. So it's a trade off, higher reward to risk multiple and lower probability, or lower reward to risk and higher probability.

The SET is calculated using the opening prints of each of the component stock. Take a look at the contract specs. It says exactly what happens when Friday is a holiday. I'm not sure that the first of the month has to do with anything.

http://www.elitetrader.com/bo/index.cfm?action=view&B_ID=102&CatID=4

SPAN is used in futures and futures options. It's similar to portfolio margining.