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Everyone knows it's against the "rules." The fundamental issue people have is that the rules are designed to protect vested interests and large players, not the overall market.

SMART routed?

http://www.zerohedge.com/news/2016-09-17/secs-former-head-hft-expert-joins-hft-titan-citadel

And in case anyone hasn't heard about it yet - the "other side" here (or atleast the most vocal of them) was none other than our most benevolent Citadel - headed by famed art collector, multi-billionaire, and protector of the poor, Ken Griffin. That my friends is why this guy is in jail rather...

The point of a straddle when gamma scalping/delta hedging is for realized vol to come in higher than implied vol. The hedge is specifically about trying to isolate direction out of the picture while defending against time decay. Like any option strategy you have to be right on something in order...

Indeed. I screwed up and took the 10th root of 4200 not 42 and didn't catch it with a common sense filter. 2 orders of magnitude error is still okay between friends though, right? :D

Alright, not trying to be argumentative here, but realize in that situation the buyer would simply buy more DITM calls. ATM isn't even in play here nor is gamma as we're already well past the inflection point for gamma while DITM.

So what. I'm out 3000$, and if I still "believe in it" like the long stock holder I simply put another one on. For sake of argument let's say it even dumped 50 points in some kind of odd flash crash, who's better off now? I lost 3000$, you lost 5000$ (doesn't matter if you want to call it...

Are you talking short straddle or long straddle? Anyway in a nutshell the point is to hedge out deltas and make the position about realized vol vs implied vol rather than direction (same goes for short or long straddles).

Not exactly breaking news that savings bonds pay 100% return over 20 years. WSJ must be looking for things to write about as this is old news. They're not a dumb investment IMO, "stocks" have a ton of risk, these effectively don't. Besides they're limited to 10k-20k/year total, so it's not like...

If you're instead long the underlying you're screwed anyway. The whole point of the DITM option is to get extrinsic value out of the picture but maximize margin by hopefully paying less up front in premium for the option than margin for the underlying. 30 for AAPL 85 Dec'16s (~0.97 delta) while...

Still that's like 230% a year if my calcs are right. Regardless of the debate here, those guys obviously have some skunkworks stuff going on - which is most likely why it's a closed fund. On the other hand it also sounds too good to be true.

Well yeah if you're a perfect trader taking perfect trades disrupted by all manner of random left-field moves than everything is great, but in reality there's this thing called volatility drag and it's a real issue.

I'll give you a perfectly valid reason: unless your platform handles submitting "stop protect" orders then no "stop market" order you put out there will actually sit on the exchange. For instance, CME supports stop-limit and stop-protect orders, it does not support stop-market orders. So when...

How would spot USDCAD not be an option here if he simply just wants to hedge at the moment of entry?

This is wrong. A stop-limit order is *never* a market order. When the stop gets hit, it triggers the initiation of a new limit order entered into the book. Just because the stop sits out there waiting to be triggered by the market does not make it a "market" order; it's just a trigger to do...

It's called a "marketable limit order" dude. If you cross the spread with a limit you'll be filled instantly just like a market order but if there were a sudden drop in liquidity right at that moment you would be NOT screwed like you would with a market order.

I don't think IB is remarkable in this regard I just think that they did it properly. First off they most likely abstracted all the exchange specific PITA nonsense into exchange specific modules for actually gathering the executions into normalized set of data. Then they wrote consumer code...

Not before a large swath of people get smoked in the process and the Fed knows this - which is exactly why you aren't seeing any rate increases. This is a game of biding time and nothing more.

The spreads just have a "finer" tick increment - typically because they move less. The actual monetary value is the same. This is not specific to SGX and actually pretty common in a lot of markets where the spreads don't have a large ATR.