They do lock in losses: If they buy stock at $100 today and sell strike 100 ATM call for $1 for this month, then they can distribute dividend of...
Many of us have a main profession (like teacher, doctor, lawyer, engineer) and we do trading on the side. But I spend as much time doing market...
Those covered call ETFs that sell at ATM in my opinion are unsustainable because if the stocks drop, they lock in losses at ATM. Any thoughts?
- Front month straddle + back month straddle
With the recent meltdown of the banks and the financial sector, many brokerage firms are also affected. How financially resilient is Interactive...
My understanding is that ACTUAL options prices are results of bidding and asking among buyers and sellers, but option Greeks are mathematical...
Okay, the second issue was due to wash sale.
I thought about that too. It appears that my cash amount decreased by similar amount, but not exact.
(binary options) =~= (flipping a coin) + economics + (tech analysis)
My ITM short puts on TSLA at strike 1200 got assigned. But on the TWS quote monitor, it says my average trade price is 1159.61 rather than 1200. I...
Well, the extended trading hours end at 8:00PM EST. So, after 8PM EST, we will know if the options will be exercised or not; we don't have to wait...
According to CBOE, the equity options stop trading at 3:00 PM EST on expiration Friday. http://www.cboe.com/products/EquityOptionSpecs.aspx...
No entirely true. I have developed my own technical indicator: San Francisco Weather. If the SF weather is sunny and pleasant, the the market is...
Well said !!!
Looking at ES June quote, which is 1130.50, I did a simple risk-free interest rate discount assuming r=0.0025 and 150 days approximately. I...
You think "Fed is part of US govt?" Wake up, America !!!
Read the book in college years ago; read it again about 2 years ago. Market is essentially efficient; occasionally arbitrage opportunities occur,...
A typical scenario: a 5-point vertical spread trading at 0.25; If you short the spread, you receive 0.25 credit; the odds of payout are 1:20...
In hindsight, everything is clear. Could you have predicted on Jan 2 that Google would threaten to abandon Chinese market? The sharp increase in...
The world is round; there is no center!
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