Search results

Sundowner

Oh yeah, you're in SB aren't you? Lovely area. We take a break at Refugio, sometimes. I was up near Pismo.

Yes, the Central Coast.

Just got back from a month long stay up on the cool coast. It was very hot down here while I was gone and still is. Many of the plants in my garden that I wanted to live, died. All of those that I didn't want, thrived. I had Jerry-rigged a watering system and used mesh to hold back the...

Apparently not. See IB website. But the fees are negligable on that and several other exchanges. It's the direct routing comms. that are the killer to that idea.

Perhaps I should move this here Yeah, it probably was exciting. Should've put a disclaimer on that about 30 yr. old memories. Also on my street, Social Distortion started, but Mike Ness is the only one who stayed with that band. It seemed like nearly every other guy was in a band back then...

You're playing Password, aren't you.

Aardvark

I grew up with Danny Furious, the Blackhearts first drummer, previously of the Avengers. He's a little older and I was friends with his younger siblings. We're still friends. Saw JJ and the Blackhearts at the Whiskey c.1980 with some of his siblings. While they were getting wasted in the...

Um, dividends?

sad, but true.

Rimshot. Hey-oh.

Since the drop in price was intraday, it is attributed to a drop in IV. But that is just how it is measured. Whatever reason that you want to attribute to the drop is discretionary. Time decay, drop in vol, MMs playing games. Since it is front month, and the measurement is from near the...

Yes, sometime during 2008 - early 2009, CL option margin spiked. With the increase in vol - that makes sense with SPAN. IB required as much or more margin to sell an OTM CL option than to trade the UL. This also can make sense given the differences in the way the margins are treated. I was...

There's nothing wrong with asking the logic behind a trade. There are many kinds of option traders and the logic isn't always obvious. You don't have to answer, but thanks for the explanation. I don't think that you have to worry about sle being adequately prepared.

Whatever the logic, and I'm not saying that it's a bad trade, there are some omissions in the analysis. The put won't be exercised as long as it has div. factored in. So you wouldn't expect assignment until after the Oct. ex-div. and the put is ITM - or in the unlikely event of a substantial...

Methinks the latter.

Yes, and you often see better liquidity with OTM options. If you can gain or save a few cents with the OTM CC over the ITM NP, it is the better choice. IOW, ITM option trades may be prone to greater slippage.

Hmmm...I was wondering if sometime - you and OC could have a discussion on NP vs. CC.

Not necessarily. HV and IV are different animals. Measured differently. Some traders might have ways of comparison, but I doubt that they use the values that simplistically. Comparing current IV to historical IV levels is sometimes used to determine whether options are cheap or expensive.