I have a friend from Japan who wants to set up an offshore partnership for a hedge fund in the British Virgin isles. Can that entity have an...
Of all the greeks, vega is probably the most important, for it influences delta and gamma. Theta is probably second. I use a couple of ways to...
Just a follow-up: The conditions for trading iron condors are basically the same for iron butterflies and even bull put spreads. One wants a...
I've been trading options for over 10 years, and I never really had a discussion with anyone about when to enter option trades--specifically what...
Thank you all. I appreciate the info.
In addition, there is no rule that says you have to wait until expiration. If the volatility drops a great deal, then you may want to take your...
Funny you should ask this question. I use the greeks to determine what option strategy I am going to use. If volatility is rising, then all...
I rarely allow ITM options to be assigned (for serials) or to be settled in cash (quarterlies). This December period I actually had a long put...
You didn't mention a specific short gamma trade--for simplicity I will assume you are short either calls or puts. I have used the following: 1....
I agree with this. I would even add that a wider spread is an even better characteristic. I usually use bear put spreads and bull call spreads...
I use the generic combo feature to put together my iron butterflies. never had a problem with execution or putting the trade together. and I...
Not true. Here is an example--Last year, January 2008, the ES plunged 60 points on MLK's birthday. That Friday, I placed 4 covered puts ATM....
Here is what he did: Bought back the 970C and placed two covered calls at 995. Now he has 6 longs and 6 shorts.
With a covered call, you actually have a chance for huge gains compared to fixed gains for the short put. Think about delta for a minute. The...
Calls and puts behave differently. Each is affected differently because of the nature of their Greeks. The biggest difference is fear vs. greed....
Ran into an interesting question from a colleague. He currently has a ratio covered call going (4 long underlyings and 5 short calls). All calls...
UPDATE: IB has fixed the bug. Now, it is possible to create and execute any GLOBEX recognized spread, as well as spreads for the stock exchanges.
See above. Really no pros, unless you are a gambler and not a trader. You will see better results if you go further out, timewise--at least 4-5...
Market makers are typically long calls, short puts and short the underlying--taking the other side of the retail investor, who sells calls against...
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