The answer is "probably." Easy money doesn't usually just sit on the table for long. You found the Shld thread on the Options forum; it...
Very interesting Matador, thanks for posting that. Prior to Black Scholes, attempts at option pricing models all assumed the need for a "risk...
Try it small first just to see how they handle it. I wouldn't put it past any firm to try and squeeze out a little extra $$ by finding some way...
Missing from your analysis is your reason for believing the deal won't go through.
Okay, a new guy comes in and in his very first post anonymously hypes a commercial site. TraderZones where are you? Are you sleeping or what?
I think you're right about settle-to-settle Spin, at least that's the way IB does it. That's a good observation and for a very short-term play...
FWIW, AMD made Audit Integrity's list of the 20 companies most likely to go bankrupt in the next year....
Hey, sounds like my kinda market!
Right. He paid I think a quarter or so for that put/call combo, so if DRYS is at 7.50 at expiration, he loses whatever he paid for the combo.
As a MM, I want to post the lowest bid and highest offer (i.e. the widest bid/ask spread) I can get away with. If I can bid 3.00 and offer 4.00...
1. Sure. But by the same token, if it goes up to 7.50 you come out a loser with the option play, a winner if you buy the stock. 2. This is the...
Why not just buy the stock?
From the MM's vantage point, it's competition with other MM's that will force them to make tighter markets. Let's imagine what it was like...
Mech, bid/ask prices are not "determined." They just are what they are - the result of a lot of competition between buyers to buy and sellers to...
Keep in mind that buying a deep in-the-money RUT 350 call is no different from buying RUT and buying a 350 put. And you'll find that the put is...
You need to have a thorough understanding of implied volatility and option pricing. I once created and posted a video explaining those in some...
You're right - for the reason you mentioned and a few others, OTM index puts are more valuable than equally OTM calls. That hasn't escaped...
Sounds like a great exercise, should be very instructive, kudos to your prof. However, the information you've given is very spotty. Rather...
You can look into the Commitment of Traders report, which may help. More directly, you can also look at the OVX, the Oil VIX, which is a...
Correct, short a call and long the underlying is otherwise known as a synthetic short put.
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