Sorry you're right on the hard to borrow I got it backwards my apologies. Been a while since I dealt with that issue. Thanks for correcting me.
The expense on exercising the put will never be less then the cost to cary the put vs the cost of short stock unless the stock is hard to borrow.
Actually its rare to be assigned early on calls unless there is a dividend involved. There is an expense involved in doing an early exercise which...
I am talking about when retail traders lift offers of mm's. They have no worries, any big institutional order is going to be shopped all over they...
Larry McMillan... the noted options author had a piece in Barrons witch made a good case why the SPX puts are not a good hedge for a broad based...
Anytime youâre lifting the offer of a market maker heâs happy. Donât kid yourself into thinking they donât hedge that stuff with the...
How do you know the OI in the puts where buy to open in the puts? You simply have no way of knowing. OI is not a good tool for that.
I dont see where Rosey says he/she is talking about individual tradeable incorrect pricing. He/She seems to think they're all wrong all the time...
Its very simple... as I said when the market in xyz options are 1.40 / 1.55.... in order to do the cross they simply bid 1.41 or offer 1.54 and...
There is no guess work at all anymore, those days ended years ago. The FACT is that if those options are priced wrong then somone somewhere in the...
Richard... I have many years in the business and I donât really want to get into the specifics on my background. I am currently with a...
Fair enough rosy2. Could you please tell us then how if these options are not priced correctly why the world does not swoop in and do it...
rayl, Youâre right and youâre wrong. Youâre right in that the crosses have to be printed (put on the tape) at one of the six...
Again if they were over priced or under priced the WORLD would step in and price them correctly. If its your opinion they're priced wrong thats...
Yup itâs just repackaging of risk and rolling it into liquidity, hopefully and usually for tiny edge and big volume. Itâs a traders dream...
There are several variables in the price of an option and each impact the change in the price in different ways. In addition some have a greater...
Thanks I guess IV... it has to be better then that other board!
The MMâs do a poor job of pricing? Sorry but no matter what the underlying these days, you name it, any futures contract or any equity...
I am a new poster here but I will chime in. Here is my thought. Whatâs the point of bragging about any returns at all on line since no one is...
If you see a spike in Put volume without the underlying having moved much or having it actually go up some what do you believe you've learned?
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