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He's the one executing them. :D

Hey, please keep posting, it may not have much value for most, but it's entertaining, if nothing else.

If you can't figure out this one then maybe you shouldn't be trading it.

Strike price selection is part of the directional system, so to speak. You select the strike prices that you think suit your outlook for the underlying. There's no way you would get a 1:3 reward to risk ratio going far out of the money (well, obviously depends on what you mean by "far"), you...

A diagonal spread adds another dimension, namely a intermonth volatility spread.

You are missing the point here, verticals like individual options are fairly priced in general so in the long run you are gonna lose money due to commissions and slippage. Risk management/position sizing is an important part of the profitable trading approach, but it's not everything. You...

I'd say the binaries are a lot more straightforward than regular options, when it comes to pricing. The price is just a simple probability.

It doesn't matter whether you sell naked options or spreads, neither one has an inherent edge.

Good luck with this strategy!

They are not missing, options are listed in cycles, read the article suggested or visit the exchange's website.

The synthetics are valid at all times not just at expiration.

I had the same experience. The people at CBOE are lot more responsive and knowledgeble than brokers.

It's not about rocket science, you have to make sure you are using the futures contract that is the underlying for the particular option (i.e. that the option expires into this futures contract).

Are you using the correct futures contract?

And after 21 pages we are back to square one! :D I wonder how many more threads are gonna get started on this topic!?

In addition to using the mkt quotes rather than last prices as mentioned by Mark, it does look like the volatility maybe the culprit here. The volatility on a 30 call has decreased 400 bp, which has probably offset the stock price rise, add in time decay and you got those -0.05. The volatility...

Who cares about ticks, the tick size is absolutely irrelevant here. We are talking about equivalent price moves. SPY is 1/10th the SPX. So if SPX/ES moves from 980 to 981, then that's the equivalent of a move from 98 to 98.1 in SPY.

1 point move in ES is equal to 0.1 point move in SPY and not 0.01.

There is no rule that says if implied is above historical then options are overpriced, but yes, some people use it this way. If you expect the volatility to drop then a credit spread is an appropriate strategy. However, a credit spread has a limited vega so it's not terribly sensitive to...

That's correct, but that's a different story.