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Aren't futures up on Bloomberg?

Treasury bubble?

Why is that? Did he get the word from above?

Maybe not tomorrow but some time soon.

Interest rate options. http://cboe.com/Products/InterestRateOptionsSpecs.aspx

The market turned higher next day after this drop.

In order to justify the risk your stock should be sitting on the nice profit already by the time you write the call. Otherwise the loss would be comparable with the risk and can't be qualified as 'little'. To get to this point of considerable profits for your stock I guess you had to buy it...

If the stock drops CC will be a losing trade no matter what you do with the call. As MTE said CC protects some downside at the expense of the upside. 'Covered can work in all market condition' needs some clarification because what works for you might be a failure for others.

I think you've got it all wrong. Buyers of the options pay the carry cost to the seller ( in your case a car dealer ) upfront. If I am a buyer of the option contract from the car dealer ( the right to buy his car in the future at the predetermined price ) he can't exercise this option contract...

So the cost of carry for the market maker and cost of carry for the option buyer ( extrinsic value of the option ) are equal ( or priced in into extrinsic cost if it's easier for you to think this way), right? ( We can ignore volatility and other factors in the extrinsic value if it makes any...

In what way extrinsic value of the option is different from 'cost of carry' for the market maker? Do they use the different formulas for calculations? They have to be the same. Market maker has to charge the buyer of the contract exactly the same price it costs him to carry it instead of him...

I believe that the cost of carry ( time premium of the option, or how much the buyer of the contract has to pay to the seller above the intrinsic value of the option if he carries it until expiration ) should be part of the option contract ( option agreement ) itself ( as a separate clause )...

Can he assign early the short put which is part of long call/short put combo ( AKA synthetic long stock ) if the interest has not been changed and no changes in divs? If he can will it in some way increase the carry cost of the synthetic long stock that was agreed on between a retail client and...

When we are buying call or put contract it's well known what is the cost of carry it until it's very expiration no matter what happens with the interest or divs down the road. Cost of carry of the vanilla contracts is a known variable ( and it's fixed if the contract is held until the...

Cost of carry is how much you pay to hold an option contract. The question is whether you can open a contract with one price to pay to carry it and then it turns out down the road that the price of carry goes higher. It's not true for the outright long calls or puts. The cost of carry there is...

I know that only short options can be assigned. I am looking at long call/short put combo as one contract ( one unbreakable entity ). ToS software knows to differentiate the open interest of the naked puts and the open interest of the combos as one whole entity. I believe market makers know...

But if I am shorting put and buying call at the same time and with the same strike price would not that mean that I am paying the carry interest to market maker with my long call? Shouldn't the market maker be holding this short put/long call combo till the expiration even if the premium of the...

Apparently the subject is still relevant. ;)

OE pays you interest on short options that will far more outweigh their assignment fees. IB does not pay interest on the proceeds under 100k. Option traders don't do excercise that often so this fees should not matter.

True. zdreq, Let's say you have 200k in equities ( stocks, not cash ) and 0 cash balance. You sold short stock with 100k of proceeds. Now this short stock went up by 20% and it's worth now 120k to buy it back. IB will charge you interest on 20k even though there is 200k of stock equity in...