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According to this site, the Fed is good: http://hidhist.wordpress.com/banksters/debunking-the-federal-reserve-conspiracy-theories-and-other-financial-myths/ But according to Bill Still in Money Masters, the Fed and the World Bank for the New World Order are the ultimate evils that seek to...

Please help me understand: According to yahoo: http://finance.yahoo.com/news/A-piecebypiece-guide-to-apf-3479716471.html?x=0 , there will be a ONE TIME ONLY audit of the Fed. Is this a joke? To me, this reform act only reveals the Sith apprentice, but the Sith Master (the Fed) is...

Any advantage to hedging long S&P with long VIX call as opposed to other means?

In addition to what others have said, consider the following: 1. Stop-loss does not cost money; buying put does. 2. Stop loss suffers from whipsaw; put does not; 3. Stop loss won't save you from potential huge gaps; put may. 4. Stop loss can be adjusted at little or no cost; not so for...

Thank you all for your informative replies. Some options spreads have limited profit potential and unlimited risk. If brokers allow people to place these spreads (e.g., short staddles and ratio verticals), then essentially the brokers give these clients "unlimited credits" and hope they would be...

I have been trading my IRA with IB, and selling naked options is forbidden in IRA accounts. I am thinking of opening a regular trading account, and I want to get the highest level of trading privileges. It seems to me that as long as people have enough funds to cover the margins, brokers...

Points well taken. Thank you demoship!

Some hedge funds keep their trades secret by have several brokers or clearing firms each of which only executing only part of the overall planned trades. Is there any merit to this game plan? I ask because I am thinking of doing the same thing when my account, with all hopes and luck and labor...

I honestly don't know how I posted it twice. Probably doing it half asleep around midnight :) You posted it twice for maximum effect!?:D (JK, sorry!)

Here is an example of a meltdown: at the beginning of Apr this year, I didn't think SPX was going to break above 1470. I placed a credit spread -1470C/+1480C with 20 contracts. To my amazement, the loss now is more than $24,000! What is worse, the loss is too rapid to take action because I have...

Here is an example of a meltdown: at the beginning of Apr this year, I didn't think SPX was going to break above 1470. I placed a credit spread -1470C/+1480C with 20 contracts. To my amazement, the loss now is more than $24,000! What is worse, the loss is too rapid to take action because I have...

I have been trading my IRA; so I have not needed to report anything yet. My questions are: 1. If one is trading a regular account, will his or her broker (e.g., IB) automatically send a statement to the investor and IRS? Will all trades and all legs of the trades need to be reported? Or only...

I am looking at several indices, DJX, DXL, MNX, RUT, SPX, OEX/XEO, and am trying to stick to just one. SPY has bad fills in my experience because it is traded on only one exchange. Which index has the best trade off among liquidity/option open interest, slippage, speed of execution, etc...

There was a thread sometime back discussing an "optimal" options position: a flying wrangle. I have been playing with some models and I am trying to find another "ideal" position which is the following: 1. delta close to zero 2. large positive gamma 3. very small negative theta (can't...

I am trying to read the IB online help pages on Combo Orders. Below is the notes section in sentence fragments. Can anyone understand what they mean? Or what would the complete sentences be? Quote from IB: ---------- Note the following: For vertical call spreads 5 index points apart...

Gamma also exponentially increase if and ONLY if the option is ATM. So, if you short an option and it moved OTM, gamma exposure is limited as expiration approaches. Being OTM also helps even if time decay is not as favorable. Being ITM is the problem.

The magnitude of theta rises exponentially as expiration approaches (exponential time decay) --- ONLY and ONLY --- for ATM options. Theta is more or less flat and decreases to nearly zero prior to expiration rather than increases exponentially. If an option is ATM now, it likely will not be one...

My concern is, "every action has an equal and opposite reaction." I am not sure if DNDN will come down just as fast and hard. I got burned on XNL when Bush made a speech on EtOH. Look at the chart of XNL maybe 2 months back.

DNDN has risen from $5 to $23 in a week; IV is record high: IV today, 4/9/2007 is 201%, and 30 HV is more than 300%. I am uncertain where to price or the IV will go. Fundamental: potential new drug for prostate cancer. What is a high probability strategy in this situation? Any thoughts?

I am using IB TWS. Some of my trades are multi-legged and I do not want to leg-in the trade. Is it possible to use LIMIT order for the multi-legged trade, or do I have to put LIMIT order on each leg? Or do I just have to use MARKET? Thank you for any suggestions.