You can trade ES with IRA in IB. Unlike margin with stock trading, margin with ES trading is not a loan.
Murray, You are right that if the underlying moves toward your short position. The best case for diagonal spread is for the underlying to move...
Coach, How do we compute the return on risk for diagonal spread? Since you have traded both ES and SPX, can you tell me the benefit of...
The daily swing for OIH can go as high as $10. I don't like to have strikes close to the daily range. It makes me hard to adjust my positions.
I have a lot of naked writes for OIH in both Jul, Aug and Oct :)
Calls. I think the strike difference was $5 and 10. The problem was that the bid ask spread was too big (for PD). I probably could make money...
I agree. BTW, yesterday i opened a credit spread 1130/1100 @ 1.40, today the mid point for 1130/1100 is around 0.7. Should I cover it or...
I probably can't comment on SPX or ES. Yesterday it was my trade with SPX, thanks to the idea from this forum. My past experience with stock...
It is hard to get IV lower than HV. MMs want to make $ (IV higher than HV is one of their edges ). One way is compare the current HV...
I used the diagonal and calendar spread in the past. One thing I didn't like was the initial debit. As the market continues to go down, even a...
Richard, theo. value is calculated based on HV, so you will never get filled using these calculation. FOTM options are priced using IV that...
I suspect: FOTM/OTM is good for a steady up/down, or sideway environment ATM is good for event play (like buying at low vol, and selling at...
It seems to me that the diagonal spread depends on VIX. Can you elaborate how VIX affects your position? Vega should be small initially and your...
Richard, How do you use the theoretical value? You don't know the IV, and IV are different for the two strikes. You can't use HV for your...
Cache, Did you check and see which one provides you a better return. 50%---FOTM/OTM 35%---ATM 5%---ITM (or simply long puts/calls single...
MoMoney, I totally agree with you. If GARCH doesn't provide any better predicting ability than ATM IV, I will say that it is not useful....
Coach, I have used a strategy like this for some time. I don't know what it is called. An example is: On 7/13 when iwm = 68.2 Long Aug...
MoMoney, Any live chat for option trading?
Thanks Coach. The second spread (1130/1100) has been filled. This is my first trade with credit spread strategy inspired by this forum....
Ben, Why would European options make a calendar spread riskier than American type options? I thought European options didn't have the risk of...
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