Search results

The ALWA trading system has an incredible Sharpe ratio of 3.041: http://www.collective2.com/cgi-perl/system/grid.mpl Comments?

I am trying to get some discussion on how to maximize or minimize the effect of time decay when you have accurate market forecast. It is best to illustrate with an example. If XYZ is trading at $100, and you forecast that it will TOUCH $105 or $95 within 4 weeks, but you are not sure when it...

Chinese are very smart. Here are the results for the International Mathematics Olympiad and they are almost always gold or silver: http://www.imo-official.org/results.aspx China is the third country to develop nuclear weapon; they launched their first satellite in 1970 during the...

What is Google trying to do? Trying to be a leader in business and technology, or a moral enforcer and a champion of American values in other countries that have different cultures and customs? If I were a shareholder, I would like to see Google make money rather than be a self-righteous moral...

Calculations for profit, break even points, and risk are the same. Is there any reason you definitely want to go ITM, ATM, or OTM?

Sorry, it should read " excellent chance it would NOT close above 118."

But you shorted SPY Friday to cover assignment, and your shorts were closed Monday. I never thought IB would let you short stocks. ??

I have read on a site that "If you make multi-legged options trades frequently, you should check out the brokerage firm OptionsHouse.com where they charge a flat fee of $14.95 per trade, regardless of the number of contracts, for up to 4 legs." I am currently using interactive brokers and I...

Hindsight is 20/20. My original analysis showed good chance that SPY wouldn't close above 116, and my second analysis show excellent chance it would close above 118. Should have just gone to sleep this month. SPY close at 115.97 today. Damn !

Thank you, MTE.

Hello: I have encountered short SPY options that became ITM and didn't get exercised. I use Interactive Brokers (IB) and have long and short positions on SPY. To make things simpler, let's use the following example: Short 1 SPY 100 put Long 1 SPY 95 put and I have $500 to cover the...

Ammo, you the man !!! Thank you !!!

Hello: I am trying to get some suggestions to salvage a vertical spread. I initially had 116/119 bear call spread on SPY. I rolled to 118/121 when SPY rose past 114 on the employment report. There was a loss on this rolling. Yesterday when SPY rose past 117, I closed out the spread with...

Any source to substantiate your statement that the Chinese Yuan is interest free and does not represent debt as the US Dollar does?

Very good point. Moody said it may downgrade Greece from A2 rating, and S&P may downgrade it from BBB rating; both mentioned they may do so at end of March. My concern if whether this may occur earlier. I don't have experience with the Russian default, as I was in school then. Did the actual...

CNN mentioned that Greece has senior debts to pay by the end of May, and I have some short positions that may need tweaking. Does anyone have more details? Thanks.

As an aside, LTCM pairs-traded. Not sure if with options. They blew up. Comments?

I guess it depends on your personal risk appetite. E.g., with 24 hours or less to expiration, while most options should really be worth < 0.01 but trade at 0.01 or more, then indeed, the premiums are quite elevated. Mispricing occur more frequently close to expiration.

Agreed. If your analysis is right, it may be better to use other strategies without being restrained by margin requirements.

The dotcom bubble before it burst was described as period of irrational exuberance by Greenspan. I was in school then. Can anyone please comment on the option skew during that time? I imagine the skew would be to the up side. Thanks.