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Until regular hours. Check out CME for details on circuit breakers.

It's the overnight limit down level, hence the "support".

Just type in "algorithmic trading" into Google...

Yup!

If the stock expires below 101.50 then you would have a loss on the option equal to (stock price - 10) - 91.50. So, if the stock expires at 90, for example, then your loss is 90 - 10 - 91.50 = -11.50. Deep itm, low volume = wide bid/ask spread = significant slippage. I wouldn't recommend...

Thinkorswim and Hoadley's.

To hedge a short stock you go long synthetic so that's long call, short put or +C-P. That is, -S=-C+P so to hedge -S you need to reverse the other side, so -(-C+P)=C-P.

The two are synthetic equivalents if the same strikes are used. That is, selling a 50/55 call vertical is the same as buying a 50/55 put vertical. Selling a 50/55/60 iron butterfly is the same as buying a 50/55/60 call butterfly or put butterfly.

The key word is "sideways", a covered call is not a hedge in a downtrend!

Writing a call is absolutely the worst way to hedge a long stock position cause all you are doing is taking in a small premium which hedges you against a couple percent drop, but leaves you open to a major selloff, and at the same time, you give up all the upside!

Time value is highest for ATM options no matter which stock you look at. Time value is also a function of time to expiry and volatility. So if the time value is high relative to the time to expiry it means that the volatility is high.

My guess is that he doesn't want you to trade something you do not understand, which is really good considering he's getting paid a commission so the more you trade the better he's off. I would suggest learning about options first and then if you still wanna proceed then trade all you want, but...

Well, to put it mildly, that's open to debate. It's one of the worst strategies you can think of, your upside is capped and you keep all the downside of a stock and pay double transaction costs on it! Don't sell covered calls just so you can recover some of the loss, it may end up costing...

This thread is really fun!:D agev, your insights are mind-blowing, I shall follow your posts closely and learn how to make it in this market! Finally, someone has turned on the light at the end of the tunnel!:D

I presume you are referring to the UIG series, those are non-standard contracts. You can find the adjustment note here.

Statistical analysis of what? Option prices? Option trades? Or statistical analysis in general to develop an option trading system/strategy?

Do your own homework. I mean, how hard is it to take historical data and run a simple correlation analysis!?:confused:

Sell puts or put verticals, buy OTM butterflies...basically, you wanna be long delta and short vega. Long calls are not a very good play cause they are long vega.

Iron condors working over here as well, profitable the last 3 months in a row. This month doesn't look too good, but there's still time.

CFE