Search results

  1. tommcginnis

    How to calculate implied volatility for a delta 25 option? :)

    I don't know what "doesn't differ from time to time" means, but if you're trying to work something as close as practicable to the options chains that come along, you're going to have to work with the strikes that are printed/available. (Your choice -- as per spindr0 and KSchmit above, is to...
  2. tommcginnis

    Attention day traders

    We *all* prefer a number, Jonesy. Where's yours? (At any rate, this is global event-following. We follow the DAX. The DAX put in a bottom at 8am.) Ooop!! Clarifying edit: "We follow the DAX by half its relative change." So, at this moment, the DAX is down by -1.63%, I would expect the SPX to...
  3. tommcginnis

    anybody having issues at IB with pending orders disappearing?

    No issues here, except for ES options expiring today, NOT being recognized as viable contracts (by strike, by native combos, etc, and not getting data). Haven't seen this in the SPX, and it's entirely mop-up, but no having traded ES in a while, it raises an eyebrow. SO, "I've got an...
  4. tommcginnis

    Scalping - The Real Deal - The Best Trade This Summertime?

    Then I would offer a second criticism {"observation"??} being, that one of the things that clued me to the presentation likely being 'for real' was the comment of having flexibly placed entries being a good drop (long) or pop (short) away from the market, such that if you're entering long, you...
  5. tommcginnis

    What makes you angry when you trade?

    Possibly the single best post on ET I have read. *What* a summary. Way good on you.
  6. tommcginnis

    Scalping - The Real Deal - The Best Trade This Summertime?

    :D :cool: Meeeeee, tooooooo. But lastly, (Okay, "and a question".....) What are the meters on the bottom?) (Okay, a *second* question:) Is there a ATR measure anywhere about?)
  7. tommcginnis

    What makes you angry when you trade?

    Having grown up with a Long Island mom married to a Brooklyn dad, I'd beg to differ on the whole "Asian" thing...... :D:banghead::D:banghead::D:banghead::D
  8. tommcginnis

    Scalping - The Real Deal - The Best Trade This Summertime?

    Not my technique 100%, but the video's over-riding need for a 'sense of flow' and fluid set-up (and a quick hand on the exits) is very refreshing. I only got 20 minutes in, but by way of constructive criticism, there is a bothersome equivalence between indexes, with an assumption that they will...
  9. tommcginnis

    Rookie Questions on Covered Calls

    Ha! Just for fun, we can correct your example a second way: the subject was for a covered call, but you describe giving the buyer $1000. And then he buys your car for a $1000 premium above a presumed $5000 fair-market price. What you have described is selling-price insurance: a put -- not a...
  10. tommcginnis

    Is this options order legal?

    The market behavior you're describing is an everyday ocurrance. That doesn't make it any more *fun* to deal with, but there it is. :rolleyes: Your solution (and others that no doubt come to mind, right?) has you arbitraging bids and asks across the market: *Caution!* Just as you thought it was...
  11. tommcginnis

    Rookie Questions on Covered Calls

    No. An ITM analogue to selling the car would be ☼ You are selling your car for a fair-market price of $6000. ☼ The buyer gives you $1300 for the right to buy the car for $5000. ☼ He then (exercises his right and) buys the car for $5000 before his option expires. :rolleyes: Cheese, Louise.....
  12. tommcginnis

    A supply and demand question for the economists.

    No, they are simultaneously determined -- the {implied} volatility to which you are referring is derived from the option prices -- it is a side calculation -- a happenstance. If you look up ANY definition of implied volatility, you will see distance_from_the_market, you will see...
  13. tommcginnis

    A supply and demand question for the economists.

    You're confusing apples and orange-colored bricks. Nothing remotely similar between supply/demand imbalances (that drive bidding changes in market price) and differences between HV and IV (which carry NO necessary link between the two of them). I am *hoping* you meant to say, "...or under...
  14. tommcginnis

    Investment Structure for a Prop Trading Business

    ...which I think is what the OP intends. I would disagree. The *existence* of places like ET depends on adding value somewhere. ET has advertisers, sure, but just like TV, *we* are the product. So, what do *we* get out of it?? We get different views, different methods, occasionally...
  15. tommcginnis

    Rookie Questions on Covered Calls

    1) If you're selling a $10 ITM CC, the call premium will be more than $10, not less. 2) An oft-cited risk of selling CCs is the same as owning outright: the risk of loss should the underlying drop. By entering an ITM CC, you lower the basis of ownership by that call's premium amount, and...
  16. tommcginnis

    Investment Structure for a Prop Trading Business

    All good and true things, but I "chose" not to read 'prop firm' as the OP had written, but to substitute "a small set of guys who group capital as equals" -- as I thought that was closer to the details provided.
  17. tommcginnis

    Why are Central Banks using Economic Growth Control Mechanisms to Control Inflation?

    Conspiracy, much? :banghead: Sucking up too much of that gummint chemtrails? :confused: Meanwhile, back here on Earth, we recognize that the Fed's 'Stable Money' mandate (expanded in the early 60s{?} to include stable employment) DOES NOT INCLUDE GDP, nor does include ANYTHING to do with fiscal...
  18. tommcginnis

    Why are Central Banks using Economic Growth Control Mechanisms to Control Inflation?

    (Borrowing from H.D.Thoreau...) "Stability stability stability." I think we can expect the FED to adhere to -- * a regular communications policy, * clearly established expectations, with * a rule-based policy, which still contains * a 'range of reasonableness' that still allows the...
  19. tommcginnis

    Why are Central Banks using Economic Growth Control Mechanisms to Control Inflation?

    TAYLOR RULE: As an equation... According to Taylor's original version of the rule, the nominal interest rate should respond to divergences of actual inflation rates from target inflation rates and of actual Gross Domestic Product (GDP) from potential GDP: In this equation, is the target...
  20. tommcginnis

    Investment Structure for a Prop Trading Business

    How you (all) agree to structure it, is how it should be structured. There are as many specifics as nearly the number of firms. There *are* some conventions, and, no lie: they are available on Youtube. BEST WISHES. And Congratulations.(!!) (FWIW, I'd prepare three scenes for the pro forma...
Back
Top