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Actually, not enough said! Time decay does NOT equal edge! In general, options are fairly priced, the days of mispricing are long over. So when you sell options you have small wins most of the time, and occasionally get a huge loss that wipes out the wins. When you buy options you lose small...

Here we go again.... What's the advantage of selling over buying?

Rookie or no rookie, when someone asks a question like that, I'm sorry, but he/she deserves some "punishment". :D

Both are european-style! What sort of differences in option prices are you talking about? If you can see the disparity then why not just make the trade and see if you can arb it.

CashProfits, You need a margin account to sell spreads, period. Your b*tching about won't change anything, so get over it. Besides, it's not like you are required to use leverage when trading in a margin account! If you don't like Optionhouse go with another broker. Thinkorswim comes to...

Actually, it's you who doesn't have a clue - http://www.federalreserve.gov/bankinforeg/reglisting.htm#T.

The synthetics are always based on the same strike price(s), no matter which strategy you use. A 45/50 long call vertical is a synthetic equivalent to 45/50 short put vertical, a 45/50/55 call butterfly is equivalent to 45/50/55 put butterfly, 45/50 strangle is equivalent to 45/50 gut strangle...

The strategy you want to do has a margin requirement so you need a margin account to do this strategy, simple as that. It's not the same thing as buying stock on margin, where you actually borrow money to purchase the stock.

Yes, thinkorswim does have this capability. Look up DDE.

I'd say you are confused about options in general, not just about eurodollars. Your logic is flawed no matter which underlying you use.

You keep referring to gamma, but I presume you meant delta and not gamma!?

Ok, here are the stats for the Fri open vs. Fri settle for RUT for the same period as before: Average difference in absolute terms 0.49% St deviation 0.54% Max 3.72% or 27.67 points recorded in Sep 2008 expiration. The 2nd highest was Aug 2007 exp with 18.45 points.

No such thing as the most common adjustment, it depends on the situation and your plan. For me, it closing out the spread.

I have the data going all the way back to November 1993. However, I'm comparing Thu close to Fri settlement value, and I haven't updated the data after Dec 2008 expiration. Here are the stats for the difference between Thu close and Fri settlement value calculated using the absolute...

Futures won't do you much good. The settlement value is calculated off of the opening print of each individual stock in the index and it can be dramatically different from the opening index value, futures and it can even be several points higher than the high for the day or lower than the low...

Good one!:D

Yes, assuming the index settlement price is below 520 tomorrow you will get the full 10 points. The problem is that the index is definitely within striking range and with GOOG earnings coming out after the close today, I'd assess whether the extra 1.5 or so(you should be able to sell the spread...

If it expires ITM you are guaranteed to be assigned, even if it expires ATM or slightly OTM there's still a good chance you'd be assigned, depending on the afterhours move in the underlying.

Who said anything about a joke!? I use ocean waves as part of the broader picture. The analysis also includes coffee beans, trees on a windy day, coco puffs floating in a bowl and the color of socks on a postman. :D

Why would you use spy options and spy to hedge ES options!?:confused: Just use ES futures!