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atticus, what do you mean by changing from the synethic short call to the natural short call 3) buy the may 2.5C for $0.15 remains the same from synthetic short call: 1) short the stock at $1.75 2) sell the sept 2P for $1.4 to: 1) sell the sept 2C for $0.5 which is converting the...

1) GM most likely to file for bankruptcy as the government is pushing for it 2) The timeline is around June latest. 3) Once bankruptcy is filed, stock will crash and all otm options will drop close to zero, as evident by leh. Based on that, i am thinking of making the following trades...

i would just pay a little premium and close out the position you want to exit on the last day before expiration.

1) yes the government rushed in to buy stocks because they were so "cheap", not because the entire fucking system was about to crash. 2) yes still go by the "book" value of those mark to market banks and try to sound intelligent by exclaiming how under valued they are based on book value...

So before a holiday / long weekend, the vix will likely to drop or remain flat even if the sp500 are going down. If that's the case, then would it make sense to make an IV play by being long vega, with the expectation that the IV will pick up again after the holiday.

Hi DMO, Remember this discussion about the relationship between vix and spx, the basic conclusion was that vix and spx moves opposite of each other, and this relationship is assumed true unless proven false with an example. I think today is that example. What's your take? Is there...

Hi i need some help with the IB tax forms. I traded stocks, futures, and options on futures for 2008 using IB. How do i calculate the short term and long term capital gains for my tax return? In IB under tax forms there are 2 sections of importance 1) Schedule D Gain/Loss Summary...

not this again...why dont you just do a search for lenny dykstra. That's incorrect thinking. The stock is $100, the ditm call is $50. Controlling 100 shares in each case. 1) If the stock goes to 0, you lose $10,000 if owning stocks, and lose $5,000 if owning ditm calls. So risk is...

Do you have any intelligence or logical reasoning at all? the issue we are discussing which you started is whether or not china will be competitive in the upcoming electric car market within the US. Your sentiment was that of dismissal while I stated that's moronic and china's electric car...

electric cars... isnt that what we talking about here? sigh i swear some of you guys are just....nm edit: just happen to see this article right after i posted, take a look. It pretty much summarized the current situation. http://www.cnbc.com/id/30009998

It's exactly those kind of backward mindset shared equally by the overconfident us automakers and flag waving morons(ie 4444cjones4444) in this country that destroyed our industries. The same was said when japanese first came to the us, now japanese automakers completely dominates the market...

My main concern is the *CHANGE* in IV for the same es option over time. I have been tracking the IV for my straddle for a bit. Since i just buy atm straddle 2-3 months out when the es reachs certain tech level, then as it moves away to next level or theta reachs stop loss i close take...

Regardless of holygrail or a random dart. The call was good, right at the bottom on 3/5. So pat yourself on the back. Just waiting for the fall. Not sure how high it will go, but i am moving my straddle along with it since 750, taking profit off the table as it moves away from atm. 850 and...

if i am not exhausted from work, i do it after dinner for a few hours before bed. Otherwise i try to use at least 1 day of the weekend. But honestly after you got the framework/pipes+plumbing in place, most of the time is spent thinking and analyzing (which can be done anywhere). The coding...

DITM, is not always better. Just because you are not paying high premium doesnt make it better. You need to look at the underlying of the option. If the underlying is a stable stock, and based on the bias you just want to trend it. Then yes DITM is better, you are basically increasing your...

I got this announcement after logging onto IB sunday, it seems everything is done now. I checked to make sure i am not short any es futures contracts due to assignment, and i am not. So looks like everything is cash settled. ------------------------ Thanks guys for your help on this. I...

This is not 100% true, especially since he uses IB. It has one of the worst auto liquidation policies, that are ran by a humanless engine who randomly close out your position. (unless u assign liquidation order). The worst part is depends on what you trading, they WILL liquidate your...

i remember when i first joined this site to study options, i actually tried to understand what rft was writing with his pages and pages of formula and thinking to myself wtf is this shit. It made no sense. ( i am comp sci / math ). Luckily you figure out the posers pretty fast, and i didnt...

yes make sure you are on top of this, because it could trigger a margin call resulting in auto liquidation. Which is fine if you only had goog, but if you have other positions in the account, they might be auto liquidated instead depends on the broker. You need call the broker ahead of time...

got it, thank you so much guys!