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As Don mentioned, those are not the same options.

It's a short iron condor, not long, cause you have 2 short verticals!

The only way to get a riskless collar is to leg into it!

Please, let's not go down this road again! This topic has been beaten to death here on ET, and no, it's not true! Unless your friend was referring to arbitrage, there's no way to make riskless profit, and even arbitrage is not possible unless you are down on the floor.

The paper the Economist is printed on is not exactly ass-wipe material...:D

I do. I can't really tie any trade directly to the Economist, but I like it.

Unfortunately GLD doesn't have options. Btw, 50 call and 45 put is a strangle not a straddle. A straddle would be 45 call and 45 put, or 50 call and 50 put, or to get ATM you would trade 47.5 call and put since the stock is 47.69 now.

5K merely reflects the size of the contract, which is 100oz so at 805 that's 80,500. So 5K is just 6.2%. A March straddle in NEM costs 16.8%, and an April one in GG is over 22%. But then again you got a strangle not a straddle!

I second that. A 12-month option has virtually no decay, so all you will be doing is taking on the risk for the next 9 months, at least, without getting any reward. I would even suggest selling 1-month option twelve times.

I haven't looked!:D I get your point, though.

Well, I don't know how the article from 1997 proves anything, but who cares...

You wanna scalp futures off the spot chart!?:confused: Are you kidding? As others have mentioned, you can probably get away with trading longer time frames, but scalping...I said it once, I'll say it again...WATCH WHAT YOU TRADE!

You are giving Cramer way too much credit. Pinning is real, but it wasn't discovered by Cramer!

Yeah, right! That's the interbank market and no retail trader has access to that! For retail traders the spot FX market is as liquid as your dealer is.

Watch what you trade! The correlation is good, but I wouldn't trade the futures off the spot charts! It also depends on where the spot feed is coming from.

If you look on the price scale you'll see that a linear scale is evenly spaced, a log scale will be drawn out at the bottom and "squished" at the top to account for % moves rather than $ moves. On a longer time frame it is clearly visible. Just try AAPL 5 years.

Actually, the time value is exactly the same. An OTM strangle is synthetically equivalent to an ITM strangle. The only difference is that the ITM one requires more capital due to intrinsic value. The % of tied up capital lost in time value is small, but the absolute amount is exactly the same.

Let's take an example of the stock moving from 5 to 10 and from 50 to 55. On a linear scale the 2 moves would look the same as they are both 5 points. On a log scale the moves won't be the same, cause a move from 5 to 10 is 100%, and from 50 to 55 is only 10%. For intraday charts...

Why not just short a call!?

No, it means that if someone was short it then there's no point keeping it open as the risk doesn't justify the reward of 15 cents.