Search results

Any resolution on this? Did you avoid making an international payment and incurring those bank fees?

Okay if you short an option, perfectly & continuously delta hedge it AND Volatility does not rise you pocket the whole premium, right? And even if Volatility does cause the option price to rise so long as your Option expires OTM you still pocked the whole premium right as Vol goes to 0 at...

But I think my question still stands: If you are short volatility and hedge all other risks don't you always win if you hold your short options to expiration since the extrinsic premium goes to 0?

My mistake. I was confusing Vega and Implied Volatility: http://www.volcube.com/resources/options-articles/the-relationship-between-vega-and-implied-volatility/

I am having trouble understanding what happens to Volatility at expiration. Can we say Volatility goes to 0 at expiration? My options chain certainly shows Vega as 0 on expired options. Is Vega considered extrinsic value? If so, as all options expire at intrinsic value why not short Vega...

OP mentioned that they are running a DELTA hedged SHORT PUT option strategy. Can someone explain how it is possible to blow up when you are delta hedged? Assuming you are Short Puts and Short Stock, I can only see 3 ways: - You are short Vol so if Vol very quickly goes through the roof you...

Hi What could cause the last trade to be within the Nation Best Bid/Offer, for example: National Best Bid 30 / Ask 30.10 How could the last trade be 30.05 within the spread without the NBBO changing? If someone placed a limit bid at 30.05 the NBBO would step up. If someone placed a...

Thank you, do you happen to know how to do this with Ninja and Zenfire?

Hi By looking at this chart can anyone tell what it is plotting? I believe it is something to do with the tape, maybe Bid/Ask? https://twitter.com/smbcapital/status/236112466176774144/photo/1/large Any do you know how I can recreate it in Ninjatrader? Many thanks, Ben

Hopefully not...

thank you, I will try that book, this afternoon I have been reading several research papers which all concluded that yes stops are run (because their placement is predictable) and yes they do serve to accelerate price. In fact I have learnt more about order flow from research papers than I...

:eek:

Could anyone recommend some books which cover topics such as market maker tricks? Essentially, I have been given to explanations for stop hunting: 1) to increase liquidity so big players can build positions (when a sell stop is hit it is the institutions buying it from you) 2) sell...

Hi If you buy a debit spread as opposed to just buying the option (without selling an OTM option) will your profit on the debit spread position increase at a slower rate? In other words, in the following situation: SPY trading at 170 170 CALL has a Delta of 0.5 172 CALL has a Delta...

Thanks for your help, I appreciate it. Its good to get the experience of all different traders. Would you recommend limit orders to get out of day trading option positions too? Trouble is what if the market is moving fast; you submit a limit order and by the time you realise you are not...

Thank you! I need people like you with practical knowledge to help me in my learning curve. Trying to learn about trading from the internet at large is near impossible, 99% of search results are just articles written to get a website high in Google just to sell a product to you. I realised that...

Hi If you were intraday swing trading Options contracts on the SPY would you prefer to use Market or Limit orders to get in and out of positions? I ask because Linda Raschke in the article below says "Place your orders at the market.". Although she is not swing trading Options she is still...

Thanks guys, that answers everything

Hi I'm just learning about futures and assume the lead contract changed over on the 1st September since the previous contract was 09-13 and now we are on 12-13. On the attached ES 12-13 chart you can see a gap up, is my chart wrong or should this be there? If so, why has the change in...

I have the same question which I was about to post: How do I place limit orders with options when my price targets are based on the underlying? For example, when trading the underlying I would just place a limit order at 400 and when the stock reaches 400 it would be executed, if I am...