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thank you for the reply. Shouldn't taxes also be entered into that equation? If i'm not mistaken the taxes on US dividends are 25%(correct me if i'm wrong here) so the actual dividend received would be $0.375 instead of $0.50, and the end result in difference from the above example(excluding...

Hi, so my question is this, and i was hoping someone with more experience in the options market could provide me with: Supposedly I'm Short a XYZ Call option that is part of an options spread strategy(not important which one). The Short Call has 1 or 2 weeks left to expiration and the price is...

Hi guys, I was hoping someone could answer this for me, since i can't find any info on the web. I noticed that in many cases the margin requirement is much lower if you hedge an option with a CFD instead of with stock, for basically the same risk/reward ratio. Now i know that if you have...

Hi guys! So i've recently been looking into stock warrants, and although most of the info can be found online, there are some things from the actual practice that cannot. If anyone has any experience please share your knowledge :) What i would like to know is how long will it take, from...

thank you! what confused me was that they stated ''it allows you to trade volatility instead of price'' and i didn't know how that's possible without submitting a combo order. When it just sells plain vanillas it doesn't seem all that useful as stated on their website.

just got off the live chat with IB. Even they couldn't tell me anything else except what is written in the description on their website. If anyone has tried this, or has any experience using VOL orders, please PLEASE let me know. Implied volatility trading is like 60% of my strategies, so i...

thanks for the answer, but i meant as in if i sell volatility trough the IB volatility trader/VOL order, does it just sell an option? (in the previous example: short AAPL 520 call)

hi guys, i've been trading options with IB's platform for quite some time now, but can't seem to figure out their volatility trader or more specifically, the VOL orders. for some reason the demo does not allow(or work, it doesn't show real time prices) me to test it to see it for myself...

1. so for example if the stocks actual vol is at 20%, stocks IV is at 10% and we're looking at a smile skew that could be considered that the ATM options are relatively cheap whilst OTM options are relatively more expensive? 2. but if i enter a limit order for a stock at let's say 26$, stocks...

hi guys, so I've been trading on the demo for quite some time now and am about ready to start trading on a live account but still have some questions that i can't solve via the demo account. So i figured better to ask rookie questions than get burned for real money right :) since i have quite...

thank you for the answer again! it cleared things up quite a bit :)

thanks, you see i wasn't completely clear as to if the options i buy have to first be put up for sale by some other trader, or if they are put up by the broker. since they have to be put up by another trader on the other side of the screen that makes a lot more sense to me :) just one more...

Hi guys, i realise this will be a completely newbie question but for some reason i just can't wrap my head around it or seem to find it online. What i want to ask is how the option purchase or sale mechanics work. For example: - when i buy an option, do i buy it from the broker or do i...

thank you for the answer, but are there any (good, reliable)websites that offer alerts on when the stock has been upgraded or downgraded?

Hi guys, i have a question if there is a website that offers a calendar on the upcoming upgrades/downgrades of a stock? or at least when the stock wil be reviewed for potential upgrades. Also, wich analyst has the highest impact regarding the up/downgrades?

i tried closing only one contract and the profit was 1.7$, with the commission of 0.95$...so it is was meant for the whole 10 contracts, and this is why i can't figure it out. it is a demo account, is it possible that that has something to do with it?

thank you for the answer, but the commission per contract trade is 0.95$(in this case, since it is 10 contracts, it would be 9.5$), wich is still a long way from 170$. :confused:

Hi guys, I just have a question regarding option pricing. i recently sold(on my demo account): Short SPY weekly OTM put option, expiration 7th of June, at strike 160.00, premium received 0.18, and quantity 10 contracts. by equation this should amount to : 10contracts * 100 shares per...