Riskarb I don't know what you mean by the "10 minute <u>rule"</u> ? Just because one infringes margin requirements doesn't necessarily mean...
Riskarb Even the most conservative trader, who pays attention to margin requirements, would fall foul if he was on the wrong side of a market...
Another thing; When do IB have to make good their margin with the clearing house ? I bet it isn't real-time !
And how do you foresee a market freefall ???
Well, that for me is a good enough reason never to use IB, or any other broker with a similar policy. The cheapest broker isn't always the...
Another thought (must stop it now), what is the VIX forward based on ?
On what basis will the VIX options be settled ? From memory isn't the VIX an average of the IV on just 6 ATM options ? If so, and depending just...
1) An option trade is never long or short, it's just "open" - every buyer is matched with a seller. 2) Determining who initiated the option trade...
I don't know, but I do know the daily Theta isn't 0.0002 and offered a possible explanation as to why. I (and others) can't get any of the...
Fine, it's just that the value (0.0002) looked too big to be a daily decay as you suggested, and I wondered whether the original poster calculated...
Oh yeah, something wrong somewhere. Put Option with that Delta can't be worth that price. Anyway, he's got a rule of thumb calc now, which is what...
With the emphasis on approximately you can use a leverage Calc.... <font color=#ffffff>â¦â¦....................â¦â¦â¦â¦â¦â¦â¦â¦</font...
In your âbest case scenarioâ where everything (including the index) drops 3% then yes, you can forget balancing, there is no need - just sell...
Which brings me back to my point some time ago;
IV_Trader You are short dispersion / long correlation and you have correlated everything +1 in your spreadsheet example. In that case,...
Not trying to start a fight either but..... Have a look at MSFT, AA, PG which all expired OTM yet show a bigger profit than the short premium...
But just wait for confirmation from others before you go launching into multiple Calenders...
Having thought about it some more, if IV spiked in the front month such to cause a spread loss which exceeded your initial debit, then what you...
At expiry, yes. You want IV to rise across all months, as you have more Vega in the far dated than you do in the near dated - meaning the spread...
Cashflows; Buy stock - 76.30 Sell Call + 15.10 Buy Put -10.80 Net - $ 71.30 I see your point Don.
Separate names with a comma.