After reading up on the subject I am still convinced that it should work in theory. It seems to be similar to index arbitrage where one sells the...
Thank you for the answers so far I need to read up dispersion theory it seems. At expiration date the index will be the value of its...
Hi, I have been thinking about some options strategies lately. When looking at stock options they seem to generally have more...
Thank you for your reply. I am referring to situations where I am able to locate the stock at the point of sale (stock can be borrowed) but...
Hi, I am working on a strategy that requires me to short stocks that are expensive to borrow. In many cases it is impractical to create...
Hi everyone, I am developing a system that requires me purchase a security where I am requires to be short a security when the market price is...
I am trying not to be ignorant and you guys are probably right; I certainly do see the obstacles. Since I cannot backtest it I will write a small...
In that case I would but 1 long stock (x 100) to hedge the call sold. No need to hedge the put. kr, Steffan
Yes, sure; buy could you elaborate a bit?
I did not mean to put the burden of proof on you, I would like to test it myself but do not have data for a backtest. Therefore I need to do a...
In a trending environment (in either direction) the hedge only needs to be bought or sold once before expiration - so in that scenario the...
Thank you for your comments. You are arguing that the price (on average) will whipsaw the strike price and thereby eat up the premium collected...
No, I do not intend it to be a matter of luck. Maybe it is best explained with an example: Day 1: AAPL stock: $350.00 Sell May $350 Call: $7...
I would like to share a strategy idea with you guys and hope to receive some constructive feedback. Basically I am considering selling both...
Hi HowardCohodas, Thank you for your reply. I will indeed read up on this but is unsure if this is a clasic credit spread. If you do not...
Forgot to mention that I use call options in the example. Kind regards, Steffan
Hi, As a paper trader I am working on different systems and was wondering if you guys mind commenting on this idea: It is clear that...
Hi everyone, Does anyone know how to mark an order "post only" via the Interactive Brokers API? The API reference guide does not mention it, or...
Hi everyone, Does anyone know if IB charges fees for US option order modifications? From the homepage it seems that they do charge for...
Hi, I am setting up a trading operation doing systematic options trading (high volume). In this strategy pegged-to-stock orders are of the...
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