FWIW, Here is the Australian Stock exchange's explanation of TIMS. Note that IDS says IB has a few "tweaks", whatever that means.
expiry cycle
One sentence contradicts the other. I like options because I don't have to be correct on direction on timing.
I'm not an MM, but as it was explained to me it may not be anything more sinister than option MMs hedging their delta with underlying that causes...
Of course it can work, but it is not as easy as a lot of the literature makes out. There are numerous caveats. I did some videos on this topic...
Ahh I see that you were referring to VIX close... I was looking at intraday. BTW, return kudos for your blog. :) Nice one.
Yeah but which one is the patsy? :p
But it's more of a directional bet. OK if that's what you want, but a different philosophy than straddle/starngle or fly/condor
:) I reckon Dirty Harry would have been a very good options trader. :D [img]
Mark, Do you have a chart showing that? The data I use doesn't show a new low. :confused: :confused: My own surreptitious blog...
If the OTMs move in your favour, all other things being equal, it will be moving into the area of maximum theta; which with the Nov will be...
That's why the smart bookies "lay off" so they can "pay off" http://en.wikipedia.org/wiki/Bookmaker#Operational_procedures The **equivalent...
I like this idea better. You have a de-facto straddle/strangle from a management point of view, but cheap insurance, a lottery ticket even, if...
I'll use synthetics to illustrate. You own 1000 XYZ and want to hedge it, so you decide to buy 10 puts. So comparing a nearer term put to a...
That's because you are not viewing the option as a derivative of the underlying. What you say is true only if the option is viewed as a stand...
You might want to recheck your assumptions there. Higher gamma in a call gets you fewer deltas as the underlying moves down. In other words it...
Yes. According to the Chicago Board Options Exchange, typically only about 30% of options expire worthless in each monthly cycle. Only about...
I have seen that video before (and don't want to sit through it again), but IIRC the adjustment is taking the BWB to a bog standard butterfly once...
ROFL I hear you mate. :)
People tend to compare holding said options to expiry. There is no law that says you can't roll out the shorter term option (or the LEAPS for...
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