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Hi, So a I understand it LTCM was an arbitrage firm that bought less liquid bonds(ie, 29 year bonds) and sold more liquid bonds(30 year bonds) and waited for them to converge in price when the 30 year bond would become a 29 year bond and become less liquid. I am wondering how they were able...

Thanks for the reply... I guess what I am asking from those experienced with pairs is: Let's say you know that a pair of stocks was going to trade at a 1% difference one day(ie, one goes up 11% one up 10%), could you even make money off this trade after the slippage, b/a spreads, and...

Hi guys, I am wondering if anyone knows of a site where I can quickly view the historical(or at least the last year) daily percentage gains of one stock vs another in a column formant... So for an example it would show the percentage gains stock A made on 4/3/2009 vs the percentage gains...

Hey guys, I haven't been able to read the whole thread yet, so sorry if these questions have already been brought up but I was hoping if anyone in here trades/has traded pairs intraday they could answers the below questions... - How much movement are you looking to catch in these intraday...

Hey guys, thanks for taking the time to look at my question. I am looking at swing-shorting some ETFs which are mainly used by most long traders as day-trading instruments. My broker lists these ETFs as easy to borrow, but I am worried about the possible buy in since it does not seem many...

Hi Mark, thanks for the reply and the kind words. At times it is a little difficult to tell how well I am progressing with all of this as I am only 19 and kind of isolated in my learning; its not like I can discuss and question the ins and outs of iron condors or unbalanced butterflies with many...

Hi, what software did you use for this backtest? Thanks.

As far as the stock buying vs option buying question, I am not quite sure why this was such a terrible question to ask. It seems from the little experience that I have that there should be times when you should use options and time when you should simply use the underlying. I understand the...

Hi guys, just have some basic options questions I was hoping you could help out on.. 1. Should I never worry about how many options I am buying/selling, and whether that will effect me down the road as I try to sell and buy them back because market markers have to provide a liquid market? For...

Can someone possibly explain what the three day settlement period does when one is shorting? Obviously I am a newb to shorting so thanks for any help you can provide.

Thanks for the quick reply, and sorry about that loss. But just to clarify I was asking about people's experiences of shorting the long 2x or 3x ETFs or shorting the short 2x or 3x ETFs.

Hi, I am wondering if anyone here has been able to short any of the ultra or 3x ETFs for more than one day. If you have: What ETF did you short? How many days were you short? Did the shares eventually get called back by the brokerage before you were ready to buy them back? And...

If you don't mind me asking what software did you use to do your backtesting? Thanks.

Hi guys, thanks for taking the time to look at my question... So…I am wondering if it would be possible to create an automated trading system based around very short term pair trades. What I would essentially want the automated trading system to do is began looking at two pairs of stocks...

Hey guys, thanks for taking the time to look at my question. When recently looking at all the 2x and 3x ETFs issued by proshares within the Thinkorswim platform, all had the "hard to borrow" sign shown. Because of this, I am wondering if these ETFs are not allowed to be truly shorted because...

OK, well I am not sure if 1,000 open interest is illiquid for an option or not, but if it is then yes I am getting those spreads on an illiquid option. I basically stumbled upon this as I was just doing practice vertical trades and found it interesting how I would sometimes be winning or losing...

OK, thanks for the replies guys. I had been essentially scalping vertical spreads. If I would see the vertical spread that I had chosen for the day (priced in the .75 to 1.25 range) go down by about 15-20 cents quickly without the underlying moving(this happened quite frequently with the stocks...

Yes, from just looking at it from the last minute it appears both options(currently one strike and two strikes above ITM) maintain a bid size of 75-100, and at the normal peaks I would maybe see 150s and at the normal lows I would see 50. And at the extreme low I saw maybe 10-30 (only a couple...

Hi guys, I have just began learning about vertical spreads, and have done a little paper trading with them. I am wondering though if I trade something like 100 vertical call spreads(buy 100, sell 100) and I am looking to just hold them for a day, do I have to be worried if there is very...

Hey guys, thanks for taking the time to check out my question. As I have been studying options for the past few weeks, these have been the questions lingering in my mind that I have not been able to find an answer to. 1. Why would anyone buy extremely far OTM calls? It would seem almost...