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You are forgetting about afterhours trading. The official close will be used for automatic-exercise purposes, but when it comes to people deciding whether to exercise or not then they look at the afterhours trading.

If you neutralize 3 then what are you left with? An expensive "risk-free" position!?

Leveraged ETFs are daytrading vehicles as their objective is to match the daily return of the underlying index. The return over several days greatly depends on the path the index takes, so I would advise against using them as a substitute for two-week trades. Options are not perfect either...

Yeah, cost of carry is present in all futures.

Cost of carry - interest rates are at zero, dividend yield is not.

It is a contract, however, the Options Clearing Corporation (OCC) is the counter-party to each contract. Even though you trade with another market participant, when the trades are cleared your counter-party is no longer the person on the other side of the trade, but the OCC. This is why the...

Thinkorswim has neither trading levels nor account size restrictions to sell naked options (well, with the exception of satisfying the marging requirement obviously).

If you are refering to the CBOE ones then thinkorswim does.

Rho shows the change based on the interest rate you used. So if you used 1% then Rho shows changes relative this rate rate.

Rho is derived from an option pricing model, so whichever interest rate you use in the pricing model is the rate that Rho is based on.

They trade on CME, so any futures broker should do the trick. You buy if you think the EUR is going to appreciate against the USD, and you sell if you think the EUR is going to depreciate against the USD. :D

There's no right or wrong answer here as the there's no edge per se in trading a vertical vs. trading an iron condor. Lower probability gives you greater return and vice versa. It is really up to you to determine what your preference is.

I never said that you are stupid! I just find it interesting that you want to trade options, yet a few compounding return calculations make your head spin. And that's in addition to the irony of your handle - varima-garch.

If this is too much math for you then maybe you are in the wrong business, no offence. You can make money with any instrument, you just have to be familiar with all its intricacies.

Sure you can simulate it in thinkorswim. On the Analyze tab add a simulated trade - calendar spread - then there's a little wrench just above the simulated trade in the "Delta" column, click on this wrench and additional paramteres open, then click on the blue arrow next to "More". This should...

Close out the position, if it doesn't reflect your current view/forecast for the stock. On the other hand, if you think that the stock is gonna stay flat once the announcement is out then you may wanna hold on to it.

It's not time decay. The price of ETF today depends on the path that the underlying index took in the past. Different paths result in different outcomes. For example, let's start at a 100 both for the 3xbull ETF and the underlying index. The first day the index rises by 25% and is at 125. The...

You are not taking into account the much steeper run up in volatility in the front month relative to the next month as you get closer to the announcement day. In fact, this is the most likely reason you don't see any time decay and you probably won't see it at all as the rising volatility more...

A cross trade will show up in time&sales data with a condition code attached to it that it was a cross trade. I know on bloomberg you can see the condition codes, but I would imagine not all services show this.

I think "decay" may not be the best word to use around option traders. :) If I'm not mistaken, what the OP refers to is the fact that these leveraged ETFs track the daily returns of the index, and hence their multi-day return is path-dependent. In other words, they don't track the index on a...