Quote from cactiman:
Great timing. Twelve minutes after I posted this the QE3 News came out, and GLD shot up like a rocket!
No big deal . Even a broken clock is right twice a day.
Another GLD Autumn Rally?
- Thread starter cactiman
- Start date
No big deal . Even a broken clock is right twice a day.
Quote from cactiman:
Uhhhh....
Me no pair 'em, swap 'em before.
What's left of my brain has a hard enough time with Singles, Spreads and Condors!
Let me know if you do it, so I can follow along.
I'm just learning about pairs and comparing volatility... the volatility in one might tell you a bit about the other.. you could sell vol in gld and buy in slv if you think their cold have swung to far away from each other.... I'm a noob at that stuff but I'm wanting to find pairs and stick my toes it.....things are only as complicated as you make them... I got overwhelmed and cross eyed at first even with just options but over time they become more friendly and the language doesn't scare you anymore
Yes, the terminology barrier in Options World is not always easy to deal with.
There are several ways of saying the same thing too, which adds to the complexity.
Still, I'm starting to get a handle on some of the handles, and have been enjoying the journey more and more.
Especially on money making days like today!
Oops. Better not say that too loud - might jinx it...
Quote from cactiman:
Yes, the terminology barrier in Options World is not always easy to deal with.
There are several ways of saying the same thing too, which adds to the complexity.
Still, I'm starting to get a handle on some of the handles, and have been enjoying the journey more and more.
Especially on money making days like today!
Oops. Better not say that too loud - might jinx it...
so what are you doing.. just trading it outright with leverage or something?? these are things i would rather do then own the underlying..
on a Gld break out..
1. Price the otm call butterfly
2. look at a debit spread IE
3. ratio backspread ATM for a credit
4. Synthetic long
UL vs. Synthetic... margin requirements
Short Put
Position
Short 1 Sep 160 puts(s) at $2.56
Underlying stock at $160.
Put is out-of-the-money
Initial Margin
Margin requirement: $3,412.80
Proceeds from sale of short put(s): $256.00
Margin call (SMA debit): $3,156.80
+
Long Call ââ¬â 9 months or less until expiration
Position
Long 1 Sep 160 call(s) at $3.15
Initial Margin
Margin requirement: $315.00
Margin call (SMA debit): $315.00
Synthetic Margin Requirement on 100 shares..
$3,156.80 + $315.00 = 3471.80
Margin Requirement on 100 shares of the UL @ 160.84
Margin requirement on stock purchase: $8,042.00
It costs $4,570.20 or 2.3 times more to trade directly in the underlying..
this is the margin calculator i used..
http://www.cboe.com/tradtool/mCalc/default.aspx
Short Put
Position
Short 1 Sep 160 puts(s) at $2.56
Underlying stock at $160.
Put is out-of-the-money
Initial Margin
Margin requirement: $3,412.80
Proceeds from sale of short put(s): $256.00
Margin call (SMA debit): $3,156.80
+
Long Call ââ¬â 9 months or less until expiration
Position
Long 1 Sep 160 call(s) at $3.15
Initial Margin
Margin requirement: $315.00
Margin call (SMA debit): $315.00
Synthetic Margin Requirement on 100 shares..
$3,156.80 + $315.00 = 3471.80
Margin Requirement on 100 shares of the UL @ 160.84
Margin requirement on stock purchase: $8,042.00
It costs $4,570.20 or 2.3 times more to trade directly in the underlying..
this is the margin calculator i used..
http://www.cboe.com/tradtool/mCalc/default.aspx