Search results

Guys, you realize this thread is 5 years old, don't you!?

That's called a dispersion and it's not risk free.

Oh, c'mon, you are telling us that your system only works with options exactly 7 days to expiration!? So if it's 6 days then it doesn't work? I wouldn't even dare to ask about 5 days!:D

The bigs guys=big investment banks like UBS, GS and etc. SPY, SPX and others have weekly options, not weekly for every day, but pretty close to what you are looking for. Also the Australian index futures have daily options, i.e. options that expiry daily.

Thinkorswim has DDE capability and it's free if you have an account with them. Don't know the limit on the number of tickers, but you can ask them, If you can stream option chains into excel with greeks, IVs and etc then I'm sure it can handle OHLC for stocks.

Why OTC? Are you looking for exotics? The big guys like UBS offer exotics, but you need the appropriate account size for that.

That's exactly the point. Volatility is a big smudge factor so there's no easy way to determine whether an option is over/undervalued. You can look at historical volatility (aka statistical) and/or historical implied volatility and/or use something like GARCH or other model to estimate it...

You can if you want hold both calls until expiration, but you obviously don't have to. You can trade in and out of the short call if you want to or rather if your market timing skills are good.

As I said, a short iron condor is equivalent to a long call (put) condor. The same goes for butterlies. If it's a call (put) butterfly then a long butterfly is short the middle strike, cause you would pay a debit for such position... A short vertical + a short vertical = long condor...

Good point, rosy, the short would be the reverse of the above. I didn't even bother to check the details.

A short iron condor is short the body and long the wings. The "short" comes from the fact that you are net short premium. An equivalent position (synthetic) would be a long call condor, which uses only calls (buy 1 call, sell 2 higher strike calls, and buy 1 yet higher strike call). The same...

Selling a synthetic call means that your overall position is flat, which means there's no point in doing so. All you're doing is creating more commissions and slippage. You can sell a higher strike call to create a vertical spread.

Futures. You don't get exactly 4x, but you can adjust the number of contracts to get the correct exposure relative your account size/amount you wanna risk.

There's no catch, it's a probability play. You will have many small wins and then one big loss, which will wipe out most if not all the profits. On the other side of the trade, you will take many small losses and then have one big win. On balance options are fairly priced, which means that...

No, there's no dividend (well, there's is you hold all 500 stocks of the SPX), however the dividend yield is incorporated in option pricing.

The only extra fees are on sales, which amount to $30 per $1mil. So if you sell 1 call at 2.6 then that's $260*30/1,000,000=$0.01.

No

See here

Not a new feature, it's been there for a while now. They did change the volatility skew model though, so maybe that's what they meant by "new".

As Don mentioned, those are not the same options.