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Sure, and by the time you get there you won't be new to options. :)

(1) Yes, a collar is the same as a short put spread as well as a long call spread, as long as the two strikes are the same in all 3 strategies. The benefit of a put/call spread over a collar is that you only have two legs hence you save on commissions and slippage on the stock trade. If, on the...

No.

Why do you think there is an arb there? Do you really think market makers are just gonna hand out free money?

Are you trying to arb it or what?

Most stocks do.

Imagine you hold a diversified portfolio of stocks, which has a high correlation to the S&P 500. If you want to get rid of the risk you have to sell the whole portfolio, which is very expensive and impractical and when you decide to get back in you have to reverse the whole thing. The...

Each one has its pros and cons. Futures don't cost anything, but they hedge you both ways. Options offer more sophisticated ways to hedge, but there's a cost. There's always a trade off.

Yes, unless you are assigned early. And to answer your question on the closing order, yes, you can use the same spread order with the net debit.

I bet these were done in a paper trading account, so there's no need for hedging.

Guess what, everyone knows that volatility can't go to zero, so the options are priced accordingly. Also, VIX futures are used to price VIX options and not the spot VIX index.

This is NOT a dispersion. A dispersion is when you trade the volatility of the index vs the volatility of the components. Comparing realized volatility over the past 2.5 minutes vs implied doesn't sound like a viable strategy. The slippage would kill ya.

Hahaha

It uses the 3m ATM to measure the level of implied volatility. it uses the 25-delta risk reversal to measure the skew steepness. In other words, you are comparing the implied volatility of a 25-delta call to the implied volatility of a 25-delta put.

It's used in the context of a dispersion trade. Use the search here on ET and Google.

This trade is nothing like the box spread. Box spread is an arb play. This trade is not an arb and, precisely because of the box spread relationship, it is nothing more than an OTM iron condor with long body and short wings (i.e. you want the index to move to the wings).

Actually the beauty of flash orders is that you don't even need price movement to make money. :)

The strategy is called a covered call and it works as long the stock doesn't tank. Try writing a call on Citigroup when it was at 60 and see it tank to 1. I bet you won't be that excited about that tiny premium your received for selling a call when you lose 59 on the stock.

Welcome to my ignore list!

First of all, the fact that you post here for yourself to follow your trades is bull. Why the heck would you need to post them in public, just open up a word document and write your thoughts in there. And second of all, take a deep breath and relax. Noone is attacking you or trying to approve...