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Thanks for your reply. That makes sense but I'm still wondering about a formula. Would it make sense to use a Reverse Conversion and reduce the interest earned from the short equity position? Of course, that wouldn't work in software that doesn't allow negative carry cost (for example, the...

I don't follow what naked shorting by market makers has to do with my question. Or for that matter, borrow availability which is a function of how many shares lenders have to loan. I'm curious as to the mechanism of how the price of a put increases as the borrow fee increases.

In a conversion, a pending dividend increases the premium of a put relative to the call. A higher carry cost increases the premium of a call, relative to the put. When the underlying is hard to borrow, a higher borrow cost increases the premium of a put. I can't figure out what formula is...

For someone who complains about people beng off topic, it might be helpful if u figured out what the topic was. And do u really think that anyone cares about the trades u post? very Sad that u think they do.

If u're doing the stock at the same time as the sale of the call. there would be a net debit.

go back to yahoo bb

Seeking approval on an anonimous bull board. Now how sad is that?

if u turn the page upside down and read right to left, it's the quote for the put :) :)

2nd the motion. IB Greek numbers often jump around erratically even tho price isn't moving and has nothing to do with trades flipping back and forth from B to A.

If you'd use your mikey handle to recomend your forex posts and use your forex handle to recommend your mikey posts, we wouldn't be hving this problem.

The whole thing looks messed up

CRGARCIA and the like are essential parts of society. Without them, we would be closer to the lower end of the food chain. :)

Gamma scalping Feb 90 puts against long $90 stock. goes up, I sell shares, down, I buy. Get more delta - or + intraday to work intraday trend. Works fine for 2+ weeks. Lots of zig zags, getting ahead slowly. Drops to 85, roll the 90 puts down to 85, taking ITM gain (paper loss on stock)...

You need to calculate the implied volatility to historical volatility ratio. Click this a few times until the answer becomes obvious: http://www.elitetrader.com/vb/showthread.php?s=&threadid=213519

This was a good explanation on how to trade the zig zags of an underlying and will work as long as the underlying bounces around :) Tho not very often, it's not unusual for GLD to drop 5-7 pts in a couple of days so it's a bit unfair to claim a risk of only $600 yet offer the maximum reward...

It's a poorly worded explanation

If trading below intrinsic, often better to exercise option and simultaneously buy/sell underlying (,depending if put or call). It depends on how much below parity and commishion structure.

I don't have experience with prop traders or hedge funds and I haven't traded condors enough to prove anything but I think you make lot of assumptions concluding that condors just don't work. - that not a single prop trader at your firm has been able to execute the strategy without blowing up...

people aren't here to do the work for u find an online calculator and figure it out

find an ETF that correlates with your portfolio