My feeling is that right now the dumb money is being sucked in during the final frenzy while the pros are quietly pulling money out of the housing...
The CPI and PPI have not shown much inflation during the current Fed tightening cycle. The US labor market is showing some pressure recently. But...
Why do you think the buyer of the 3 105 calls want to buy the underlying at $105 from you when the market is at $95?
That's a good point. Thanks.
Now I think about it, the call does have a higher margin requirement potentially, i.e. the 10% rule. For the put it's premium + 10% * strike, but...
Higher delta, that makes sense. I forgot that. Thanks.
Thanks to both of you guys. The volatility smile in which the IV of puts differs from IV of calls exists only when the put and call have...
Say the stock is $100 and we are selling ATM puts and calls (European options). The call premium will be worth more than put premium by the amount...
1. A lousy ideal that will destroy us. 2. A great ideal that will make us all rich. 3. I don't know. 4. I don't care. I'd add fifth: the...
I bought shares of FDG (coal) six month ago, the price is up 30% so far, on top of 6.5% dividend yield.
Back to the original question, what asset classes are you guys put your money in? I am about 60% cash, 30% stock and 10% bond. I'll probably buy...
I think that's the only way to be a seller, if you want to stay in the business long. But that means your ROE is about 10% - 15% annually from...
I have an IRA account with I.B. It allows you trade futures. Margin in futures' trading has a different meaning from the one in equity trading....
I really meant A/C/E (Alliance/CBOT/Eurex) , not Eurex, where the Treasury option volume was next to nothing.
The electronic market for options on the US bond market has been around since Aug.2000. But the volumn is next to nothing. Eurex is never big on...
Andy Xie writes about China. Check in (update daily during weekdays) http://www.morganstanley.com/GEFdata/digests/latest-digest.html
I don't necessary agree Buffett said in his article. But to say he does not know the international-exchange accounts consist of current-account...
Now I think about it, I kind know why this is a bit confusing. In the two account strategy, the put and call risk are hedged and the risk...
I didn't explain in enough detail in my previous post. Let me try again. Here is the risk: For the covered call writing, the upside risk is...
You are essentially shorting a 34-put / 36-call strangle naked. As Eldredge pointed out, your long/ short position of the underlying canceled...
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