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nycderivtrader, If you think posting individual trades would help to appease the mood you are mistaken. The point that everyone is trying to make is that noone who is serious about getting investors for his/her fund would come here searching for them. And equally, noone who is seriously...

Can you show a real and audited track record?

My view is fairly simple. People are willing to pay more than the true fair price for insurance. Essentially it is the same as if options had wide bid/ask spreads and everyone would be willing to buy options on the ask and sell them at the bid.

Binaries cannot be "synthesized" from regular options. They do offer simplicity though.

The main problem with FX options that a retail trader would trade with one of those FX dealers (Oanda, FXCM and the like) is that they have the pricing power since they take the other side of each of your trades. In other words, the pricing is way too much against you.

What's the point of having both spreads DITM when you can create the same position using OTM spreads!?

You have pretty much answered your own question, the options market is a lot more efficient or rather fairly priced. The key component when trading the individual components against the index is the correlation as it has been pointed out in previous posts.

If you want to construct a straddle using the futures then you would need to buy 2 puts for every futures contract to have a straddle. Otherwise you end up with a synthetic call, in which case either just buy a call and save on commissions and slippage.

It's not a bad strategy aside from commissions and slippage. :)

Well, it wasn't really meant to be a joke. The OP asked how hard it is to get out of illiquid options, and the obvious answer is that it's not hard if you pay the full spread. I agree though that it does sound like a joke.

Just look in the prospectus. If it says ETF then you are ok, if it actually says ETN then you need to look deeper.

If it's a true ETF rather than an ETN (exchange-traded note, essentially a debt instrument) then the assets of the investors is segregated from the actual management company and so if the management company goes bust then investors' assets are safe.

If you are buying below market or selling above market then use the LIMIT order. If you are buying above market or selling below market then use STOP order. A stop order can be a market or a limit order.

I'm saying that long call+short put=synthetic long future and NOT stock.

When you create a synthetic stock position using options you actually create is a synthetic futures position since option pricing incorporates the cost of carry. So using futures with options doesn't present any problem.

1. If you are willing to pay the full spread (i.e. buying on the ask, selling on the bid) then it's not hard to get in/out of low open interest, low volume options, assuming you are trading 10 contracts or less. 2. Options that are in-the-money by 0.01 at expiration are automatically...

It's not too good to be true. Just because you can buy it back doesn't mean you won't have a loss. You can buy it back at any time paying the market price and if you sold an option OTM and it moves to ATM then you will have a loss. For example, let's say you sell-to-open an option at 3.00...

This whole thread is ridiculous. If you think this is an arb then go ahead and make the trade. If it works out then fine you will make a risk free profit and prove us all wrong. If it doesn't then you would learn a valuable lesson.

You can buy it back (buy to close) at any time. There are no special requirements for it.

Listen, the world of free money due to mispricing is long gone. The markets are made by computers and any mispricings are corrected instantly. If there is a mispricing that persists for days then you are missing some important piece of information, such as dividends, hard to borrow, non-standard...