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Hello - I have a regular full time job, but I trade on the side. This year I have been pretty successful and have yielded a decent profit. When is it appropriate to create your own company for any type of financial benefit? Is it advantageous to trade under a company name, instead of your own...

So, I'm currently long the July SPY 146/156/166 Put Butterfly Spread. The spread is currently trading at 2.18/2.23 I was looking at the August 146/156/166 Put Butterfly (same strikes as the July Fly but different expiration) and it was trading at 1.99/2.06. Does this lower Bid/Ask on the...

How is that done? Are there instructions for that, or an article?

Thanks optiontrader. That was a great article!

This is good, thanks guys! I'll be sure to check it out!

Hi, Is there anyway to calculate the "VIX" of a stock. I know the VIX index is calculated using the ATM options of the SPX. Is there any indicator that's out there to do that with a stock, like AAPL, maybe? If there isn't I could create an Excel file to reproduce that indicator, but I...

Here's the link: https://twitter.com/#!/CBOE

Would they go out and my multiple contracts of ES then? Since they have about $10,400 worth of cushion from the max profit they can make on the Put Spread.

I follow a Twitter account that posts what big trades occured in the SPX pit. I understand that the market makers/traders in the SPX pit hedge their positions by taken positions in the E-Mini S&P Futures contract (ES). Are all they doing is hedging their delta? Let's say for example, a Market...

Hello, I have an Iron Condor Spread on SPY that is expiring tomorrow. I just wanted to know if those are AM or PM Settlement. Will I be able to trade them tomorrow? Thanks.

Hi, I have noticed that the S&P Futures (June Contract) has been trading below the S&P 500 cash. Usually, the futures always trades ahead or higher of the SPX. When the opposite occurs, what does that mean? Towards expiration, the futures and cash have to converge. Is this predicting that...

I am actually long back month SPY calls and sell front month call spreads. I guess its ok to have one bad month, but I just don't want to lose all everything I have made if something like a black swan even occurs. It will be like selling naked strangles and being profitable for several months...

I guess it would be a sigma move then. With an income strategy you profit when markets are flat or atleast within a standard deviation. Have any ideas?

What do you mean by sigma move?

Let's say you have a good income earning strategy using options (i.e. covered call strategy). You have a good adjustment strategy and you are yielding good income monthly. But, something like a the Flash Crash or a "black swan event" as some like to call it occurs and the market falls real...

If the stock doesn't trade above that strike price, the option will be worthless at Nov expiration and you would lose all the money that you spent to buy those options. You will be able to sell it at anytime as long as the option has not expired and shows a bid/offer.

How would I determine wha the Vol Adj to be? If I increase the Price Adjuster UP, do I move the Volatility DOWN, and visa versa?

This is very helpful! Thanks so much!

Hello, I am currently long the SPY Jan '11 $115 Calls. I am also short the Nov '10 120/123 Call Spread. I feel like the markets are going to pull back slightly. I want to hedge myself. I'm considering purchasing a few weekly SPY Put spreads - looking into the buying the 117/116 Put Spread...

Hello, I want to place a Straddle spread on SPY this week, but I'm not sure which month to trade. I want to trade ATM options. I don't think we'll have drastic moves this week - since its a short week. Would I Jan or March options? I know volatility would have to do with this, but I"m...