Search results

You should check with your broker. However, generally, as far as I know, this doesn't work.

I watched the whole video. Great job dmo!

Compared to the last year or so the VIX is low, compared to historical levels it is still pretty high.

10-year note options or just click on the yellow "omega" icon below the respective futures contract.

You don't have to feel anything, there's an easy way to calculate whether it's worth exercising for the dividend or not. If you buy a call then for your own benefit you should keep track of the dividends and whether it is worth exercising or not.

I don't know if you could submit a single order to close out the options and futures together, but given the fact that futures are extremely liquid you could close out the options first and then close out the futures. If you go with ES options then I presume you can do the whole thing as a...

Yes, the two would offset each other. You would need 2 ES futures to 1 SPX combo. However, you can just as easily use ES options to hedge in which case it would be 1 to 1. And, yes, there is a market to close it out at expiration.

The question about education is asked at least every few weeks here on ET, so the person should try to find past discussions on the subject, just in case this may have been already discussed, before yet again starting a new thread on the same subject. So anyone who's too lazy to even google a...

I'd say you have a zero chance of becoming a quant trader. You know why? Because if you want to be a quant trader then the first thing you should have done is your own research about the field rather than coming on to this board and asking to have the answers served to you on a silver...

There's no way to maximize the profit beyond what the makret is pricing the options at. If the stock is at 13 with 5 days to expiry then you can sell the 14 put and buy back the 13 put. You won't be able to sell the spread for exactly 1 because there would still be time value left in the options...

You can just sell the whole position. Any decent options broker offers an iron condor as a spread order so you don't have to risk legging in/out of the position.

If you think about it, the answer to your question lies in the question itself. Why would someone making millions if not billions of dollars in the markets would want to write a book where he/she explains how to make money!? Just out of the urge to share it with others!? I don't think so!

I don't think options require a different trading philosophy, they just have additional variables that other instruments don't have and which must be taken into account when trading them.ž These additional variables (i.e. volatility, time,...) are precisely the reason you can be right on the...

With this kind of returns you'll be the richest person in the world in no time!

If you are long 900 call and the settlement index value is 926 then you would receive 26*100. If you are short 900 call then you would pay 26*100.

There cannot be more buyers than sellers as each contract has a buyer and a seller. You may say though that buyers tend to pay the ask, hence systematically overpaying for options.

Yeah, I would suggest pulling up the option chains and comparing the greeks across different strikes/expirations. Trying out both with real money is also a great way to learn. You'll be able to see in real time how each one behaves and what works better for you.

This is the eternal debate, so to speak, between premium buyers and sellers. Buyers lose money most of the time, but then get a home run. Sellers, on the other hand, make money most of the time, but then get wiped out on that one trade where options turn out to be underpriced. So, I guess, on...

ITM to increase the sensitivity (delta), so that it moves more closely with the underlying. Also to reduce time decay and vega. Staying with shorter expirations also helps reduce the vega and increase the delta. Aug 95 put is only -0.6 delta and Sep 93 is -0.5, which is definitely not enough...

Are you a market maker or have a seat on the exchange? Cause if you are not a market maker or a seat holder then the costs (commissions, exchange fees and slippage) would pretty much neutralize any potential profit. Besides, theta and gamma closely related, if you hedge one then mostly likely...