How about a Diagonal Synthetic Long Stock. :D I don't think there's an "official" name for this combo, I would love to find out though if...
www.cme.com/trading/prd/
The reason for this is that it allows you to write straddles if the intial put is assigned, so you can bring in more premium. In fact, it doesn't...
Yes, that's right. An American-style call will generally not be exercised early since it is not optimal to do so because of the remaining time...
Your example is a bad one, since the call would be worth at least 15 (as it has $15 of intrinsic value) + whatever time value it has, and not 10...
If you in and out of the trade within a few days (I assume, 1-3 days) then front month is better, as they have much higher Gammas. I don't know...
Front-month have much higher time decay than further out. Options lose 1/3 of the time value in the last month. Just bring up a chain and look...
Now you're talking. If you're interested in trading a move in the next couple of days then, yes, front-month ATM options give you the biggest...
Basically, it's not that clear cut, the choice of the option/strategy depends on a lot variables (e.g. time frame of the trade, implied...
Can't say anything about IB, but I use thinkorswim and there's only one margin, same at Optionsxpress.
That's not true, if you sell an Iron Condor then there's margin requirement only on one side and not both.
Your question is too broad. There's no single answer, sometimes ATM options are the best choice and sometimes they are not. There's a whole...
I don't trade FX, but from what I gathered FX futures might be a better alternative, since there's plenty of regulation and futures are...
Either way, when it stops working you either ran out of luck or the edge is gone. :D
I'm no expert in FX brokers, but you should read some of the threads here, the impression that I got is that some FX brokers are real crooks, who...
Don't worry too much about the details of how FX dealers make money. Obviously, it's not as easy as buying on the bid and selling on the ask, as...
It is the bid-ask spread. That is, whenever you want to buy you buy at the ask price and whenever you want to sell you sell at the bid price. So...
Haven't you learnt anything!? Time is money! :D
eassam, This sounds like an assignment/project I did in one of the Finance units when I was at the University. You should really do your own...
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