Right. Following, in fact, is a quote directly from the CME http://ftp.cme.com/trading/fx/banks.html
Price is determined by the law of supply and demand, right? The more demand relative to the supply, the higher the price. By the same token,...
Are you saying that market makers are required to post a bid greater than zero on every option? If so, that is great news. There are lots of...
IV and price ARE often used interchangeably. There are markets where option bids and offers are quoted in IV, not price. If you have IB, you can...
Of course, if there's a price, there's an IV. But if there's no demand, there is no price, and therefore no IV. I thought it would be obvious...
If you want to define "demand" as "order flow" then we're not having the same conversation. As most people understand the word "demand," if an...
IV IS just demand. It is nothing else. In the absence of demand, an option will in fact not have any IV. That may not be obvious, because the...
NO NO NO! That is NOT a stretch! Is it a stretch to say that the price of IBM is really just an indicator of demand for IBM? The...
Generally speaking, you want to use the actual implied volatility, for the same reason you use the actual number of days remaining and the actual...
What's an implied delta? If you mean a delta calculated using the implied volatility, then yes, that's generally how it's done.
Heech, call the span people at CME. I've done that before with some pretty obscure questions and actually got hold of someone who knew the...
Such setups don't come along very often but they do happen. The ones that work for me are when the normal skew in a contract is reversed and IV...
Does IB have any floor access - any way to get a quote from the pit, and put an order into the pit?
For your deep in-the-moneys, you can just do an offsetting futures position. For example, if you are long 2 ditm calls, you can sell 2 futures...
Oddtrader, if you spent half as much time studying options as you spend trying to convince yourself that it's really a waste of your time to study...
No one knows all the possible reasons why such a trade was made. In this case - whatever the reason for it - it looks like a pre-arranged trade...
This is not an arb because buying VIX futures only covers part of your risk. When you short options you assume vega risk and gamma risk. Buying...
"Poorer?"
Imagine you're setting out on your new sailboat for a trip around the world. Before you go, a genie offers you his personal guarantee that you...
I'm curious - is this OU doing this, or someone stealing their course and selling it quietly "behind their back?" Is the link to take advantage...
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