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http://finance.yahoo.com/q/hp?s=%5EGSPC

How do you know that the buyer is not doing well today? Maybe the buyer is long stock or short higher strike puts...

The biggest problem is the way the settlement value is calculated, which essentially means that it has very little to do with the index value on expiration Friday. In other words, up until expiration Friday the two options have the same underlying, on expiration Friday the underlying is no...

Mark, I'm sure it was a brain fart, but that's not a collar. In a collar with a long stock you short the call and buy the put.

Assuming you already have the position on you would exit the long call before the stock drops and then buy it back before it rises again, at the same time, buying back the short. Then once the stock rises you would re-short the upper call and exit the long. If you don't want to be naked short...

I'm not sure I understand what your question is. If you can time the moves correctly then you are all set to rule the world.

There's no best, and no strategy guarantees you income. In fact, looking from another perspective, you want to make a profit/income on every trade you make no matter what instrument you trade, so placing certain option spreads into this imaginary "income" category is ridiculous.

If your short calls get assigned prior to expiration then you would be short the shares and your long calls would NOT be automatically exercised. You would have to manually instruct your broker to exercise them. Assuming there was no dividend involved it would be a blessing to get the shorts...

SLV holds actual silver bars so it follows the spot price.

The position you have is called a diagonal spread. The best outcome for you is for the stock to be at the short strike in March. If it is too high above then you would have a loss given that you paid 35 for it. There is no magic way to undo the loss. Depending on the current market prices you...

There are many scanners that do this. Some are offered by brokers such as thinkorswim, optionsxpress and etc, while others are "free-standing" so to speak, such as ivolatility and etc (i can't think of any more off the top of my head). However, I'd say it is best to look at the highest...

Still subjective. A perfect world for scalping is different to the one for daytrading, which in turn is different for swing trading, which in turn is different for position trading...

It depends on the source of the data, but usually it's a VIX-style index calculation or something along those lines. If you really want to know the exact calculation then you should ask the source.

I'm not sure what exactly you are looking for, but whatever applies to a calendar, the inverse applies to a reverse calendar. This is not a complicated strategy.

A butterfly is already a hedged position, how much more hedging do you want!? I mean, the more you hedge the less is your return. If you want a flat vega profile then don't trade options. If you want to have an inverse vega profile then just do the inverse trade.

Essentially it can be anyone who has an open long position in that particular contract. It has to be the same expiration and strike, and not just the same strike! Yes you can use that premium.

I'm sure after reading your credible opinion TAG will just close up their shop.

While I enjoy the comedy, I agree with cvds16 and second his motion.

May VIX futures are not more sensitive to large quick drops! In fact not even the front month VIX futures are as sensitive as the VIX index. So until you fully understand why we keep saying that hedging an IC with May VIX options is a bad idea you should stay away from VIX options!

Yes, I am. It doesn't actually say in the contract specs, you really have to get into the way they work and how they are priced. VIX options are probably the most misunderstood product. So, once again, VIX options are priced off of VIX futures not the spot VIX. I'm not going to go into the...