Just place your order in the middle of bid/ask. You may need to move it a tick up or down after a few minutes. I also have access to live...
I employ iron butterflies. Sell the ATM, near money call/put and buy a call/put OTM for protection. I believe the comfort of protection far...
Problem with low volatility environments--you don't really know which way things will go. In this environment, options are cheap. Therefore,...
I also have looked closer at maintaining delta neutrality. But I onoy look to adjust after wide delta swings. For example, take a long straddle....
I am more comfortable with credit spreads, but I use long straddles when volatility is low and I am not sure of direction. Once the volatility...
FWIW, do not fall in love with one type of spread. It is like the proverbial round peg/square hole situation. You need to know your greeks, have...
Thanks for the info. Will ditch the caps.
I've been with IB for quite a while, and while many complain, I have been happy. I am just curious. I trade a large number of futures options...
Regarding Margin. This spread requires extremely little margin--again, I trade the s&p 500 emini. Therefore, I am bound to SPAN margin. To give...
NO PROBLEM. YOU'RE JUST NOT SEEING THE MECHANICS NOR THE TIMING, NOR THE REACTION OF THE CALLS TO THE MOVEMENT OF THE UNDERLYING OR THE IV.
It is not enough to pick direction..the volatility matters as well..and getting out when your goal is reached. Options do not have to be held to...
Solution: Don't buy crappy stocks. Stick with ones paying consistent, ever-increasing div's--the companies are out there..I named a couple.
Couple things. I trade the s&p 500 emini futures options, so no chance of early assignment. Second, regarding using a stock as the...
As a group, we do not talk enough about current option strategies. What I mean is we don't analyse, as a group, where the current volatility...
A point I think I am not getting across: I am limiting this strategy to when volatility spikes occur--and I think we all can recognize a...
There is really no way to rescue this trade. A good trader would ahve never let this thing get this far. Right now, you are looking at a paper...
A strategy I have used in the past is to purchase stock in strong companies paying a decent dividend (like now, since there are a lot of decent...
I did forget to mention one other thing that is important--this spread is to be exited 30 days prior to the expiration of the near-term option....
I appreciate the explanation spindr. I input the parameters into the P&L graph within the risk analyser, and it appears that my profit could be...
There is one thing that puzzles me. I set up the spread---buying 1 APR ATM call and selling 1 JUN ATM call. The spread does appear as positive...
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