The amount of a gift you receive is NOT considered income. The gift may seem as good as a paycheck, but you are not required to pay income tax on...
Recall that a call price is a function CP(S, X, t, v, r), where S is the current stock price X is the strike price t is the time to expiration v...
If you already own a stock, especially highly appreciated stock, collars are a good way to protect your gains. You can create collars on...
Also take a look at the SKEW index. The CBOE SKEW Index is an index derived from the price of S&P 500 tail risk. Similar to VIX, the price of S&P...
One possible hedging strategy is to use collars. A collar is a strategy where you buy an OTM put and sell a OTM call on the same underlying....
In addition to the degrees you mentioned above, you may also want to consider financial certifications. For example, the CFA (Chartered...
You can solve this as a "constrained optimization problem" using Excel Solver. You can setup Excel solver as follows: Objective Function:...
Backtesting is definitely a great start to verifying whether these trading strategies are effective. However, even if the backtest results are...
Can you elaborate on the types of calculations you want to perform? Are you trading stocks / futures / options / bonds / currencies / etc...?...
Even if the system is right 80% of the time, you can still lose money using such a system. What's more important is how much you lose when the...
Here is an interesting article from a MIT Finance Professor that may address some of your questions: http://www.mit.edu/~junpan/ddjpb.pdf "This...
Other possible adjustment strategies include adjusting the ratio's of the short call and / or rolling out to further months. For instance, as...
Beyond the obvious different in contract sizes between SPY and SPX, there are other differences between SPY and SPX that make direct pricing...
Based on your description, you have assumed a contract multiplier of 1. So using this 1x multiplier, your total portfolio greeks are as follow:...
Can you be more specific on the type of multi-legged spread you are trading and the types of adjustments you want to make? For instance, are...
Trading activity in options can have a direct and measurable effect on stock prices, especially on the last trading day before expiration. During...
Personally, I manage my risks and my P/L based on various SD (standard deviation) moves in the underlying market. Although we all know that...
Market makers are major players in the gamma-scalping arena. As they take the other side of public trades, they hedge the deltas and subsequently...
Previously, the Internal Revenue Service announced that it will postpone the effective date for cost-basis reporting for options trading. Instead...
To calculate SET, the index was calculated as if each of the 500 stocks in the index were trading at its individual opening price for the day...
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