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  1. M

    Giant alien UFO appears over Alabama: Markets crashing!

    :D :D :D Good one
  2. M

    Money Management in Credit spread strategy

    Mark, While I generally agree with you, the flip side of setting a stoploss at 100% (i.e. getting out at 6 if you took in 3, for example) or any level for that matter in an IC is that you alter the probabilities. That is, there's always a chance that the volatility that took the underlying...
  3. M

    vix put options

    You may wanna post this in the options forum. By the way, the underlying for VIX options is not the spot VIX so it is not as straightforward trading them.
  4. M

    Would you ever trade a high probability, high risk method?

    Sounds like a typical option-premium selling strategy in the form of verticals/iron condors.
  5. M

    Urgent help required

    The obvious solution is to exercise the 120 puts to cover the long shares, or you can just close them out by selling them in the market. Any other action is an entirely new position (i.e. trade) and it's up to you to decide what to do.
  6. M

    Any ideas why Nikkei/Austria/FTSE down?

    Japan is closed today, holiday. Austria looks to be closed as well, but the Bloomberg calendar doesn't show it to be a holiday.
  7. M

    option pricing question

    You really have to nitpick, don't you!? For the purpose of this discussion (i.e. to answer the OP question) my answer is approprirate. What's the point of complicating things when the OP clearly doesn't understand the basic concepts yet.
  8. M

    options brokers - suggestion ?

    thinkorswim is probably hard to beat when it comes to options, but they are not the cheapest (however, you can negotiate lower rates if you do reasonable volume). If you want cheap then interactive brokers is probably the way to go.
  9. M

    New Wall Street Dictionary

    Maybe it's not the one mentioned by the OP, but it's a good one. CEO --Chief Embezzlement Officer. CFO-- Corporate Fraud Officer. BULL MARKET -- A random market movement causing an investor to mistake himself for a financial genius. BEAR MARKET -- A 6 to 18 month period when the...
  10. M

    option pricing question

    Implied volatility is the expected future volatility. Historical volatility is the statistical volatility that was realized over a certain period of time in the past. There's no direct relationship between the two.
  11. M

    option pricing question

    Yes, volatility and stock price are the two main factors that affect an option price. I suggest you pick up a book on options and read up on option pricing theory.
  12. M

    option pricing question

    I don't know, I don't use Tradestation, but my guess would be, yes, you could.
  13. M

    option pricing question

    If the theoretical option price is different from the market price then the most likely difference is in the volatility you use as an input. That's why you take the market option price and reverse the option pricing model to get the volatility that corresponds to this market price. This is...
  14. M

    option pricing question

    What value do you mean? IV is calculated from market prices.
  15. M

    option pricing question

    Says who? Any decent options trading platform can calculate IV in real time.
  16. M

    how different is the real world trading from a trading on a simulator?

    I guess the most direct analogy would be something like driving a car in a computer game vs. real life driving. In a computer game the next time you come into a corner too fast the most that is at stake is that you lose a game. So what, big deal...Press the "restart" button and you are set...
  17. M

    how different is the real world trading from a trading on a simulator?

    Psychologically, it's day and night.
  18. M

    When Central banks increase interest rates...

    The easy way to remember this is that capital always chase higher interest rates. So if the interest rate goes up then there are capital inflows and hence the currency rises.
  19. M

    Forex Question..

    It's a very broad topic, I suggest you pick a macro economics book or at least search the web for info.
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