A short call at a higher strike and a long put and a lower strike is called a Collar. There's no way to setup a collar for a credit, unless you...
Yes, you are correct, and SPX always settles like this.
Couldn't agree more, it doesn't matter whether it is a low IV stock or a high IV stock, options are priced accordingly so it is all proportional...
I actually agree with Stock777. How do you define that you've been filled at the bid/ask? If you put in a buy order at the bid and then the...
If you know about the merger then you should also know that Nov options are adjusted (i.e. non-standard) options.
finance.yahoo.com for example, finance.yahoo.com/q/ks?s=GD
It is the day before the Ex-dividend date. For example, if the ex-dividend date is 8/23 then you need to buy the stock no later than 8/22 in order...
Actually, "the safest strategy" is a relative term. Almost any strategy can be as safe or as risky as you want/need it to be. The key is proper...
Yes, you're right, there's no margin requirement for a long calendar spread, the only requirement is the intial debit. You may want to ask IB...
Actually, you don't have to worry about your bonus. The hedger is hedging the overall firm's exposure, it has nothing to do with your exact position.
I agree. Wide bid-ask spread is a big handicap. Another variable that should not be forgotten is implied volatility. You can lose money with...
www.redoption.com/glossary.php?byLetter=I&word=193
Fred, I agree with Equalizer, if you make 7-12% per month with IC's then why the hell would you even bother to do anything else!?:confused:...
It's called Put-Call Parity.
maybe, it's because they don't want you to get in touch with them!?:D
No, Australia has capital gains tax, so although it sure is a good place to live, it is not a tax haven.
As it has been pointed out a number of times in this thread, the main problem is liquidity. Let's suppose for argument's sake that you run a...
Actually, Open interest increases/decreases only in two cases. 1. If a buyer opens a new position and a seller opens a new position (open...
I don't calculate the monthly cost. Maybe I used the wrong words to make my point, but at the end of the day, a further out straddle is gonna tie...
Don't follow you!:confused: Could you clarify?
Separate names with a comma.