Great, I can see CNBC in Greece: "We are waiting the Greece GDP numbers and inflation numbers here at 8:30 AM... OK here it is, GDP at 2.3%, revised from 2.2% due to decreased activity in the pimps and hoes sector. This was expected given the slow spring season and should pick up as tourist season begins. CPI up .4%, a little hotter than the .3% analysts expected. Most of the increase however seems to come from the average cost per BJ increasing 300 drachma on a quarterly basis. If you strip out lapdances and 2somes, core CPI is still in line with expectations."
Here's the answer from OX about the below hedged position. Kim: ok, in order to place this trade, you would still need to hold at least 50% of the amount of the short stock in cash Kim: there would be no releif for the long call to offset that position Heather: so you dont offer haircut margin? Kim: no, we do not offer the margin releif on this type of position **************************************************** Well I was saying that that is your max risk, a good retail broker should also count it that way and not treat it as a short stock margin and a long call. You might not need haircut to do that. if you were short stock and bought a call, your Reg T margin should drop. Ask your broker (ToS or OX) to see. -------------------------------------------------------------------------------- Quote from Heatheranderson: Coach and others, My idea is scalping without worrying about greeks.I intend to purchase front month calls and keep shorting SPY whenever appropriate. If i do this in retail account i have to put up 50% stock cost as well as the cost of long calls which will reduce the ROI. But with just $2000 and cost of long calls, the ROI would be lot more. what do you think?.
Heather, if this came from the live support, I would call the trade desk. I have gotten bad margin info from Live support on OX. Talk with the margin guy.
On positive side - it is good to know that only my country of origin brings some fun to the world when trying to do something smart Back to biz - Coach, can you show the numbers - min and max value for 1340/1350 EW/ES you have observed through the life of this spread ?
I used to trade flies. The best results I had was with buying back body on dips and then selling them again. This works for normal market however, i.e. making corrections, not flying to the sky all the time
Well I do not remember the widest and narrowest prices of the EW/ES spread I have but I will be posting my adjustment as I trade it around 3:00 PM...
Yes, try the margin desk since the position is hedged I would assume that even under Reg T. it would not be treated as a separate short and a long call. Been a while since I have done a position like that so I may be wrong... But call compliance/margin department.
This actually was an adjustment to my current spread...as we discussed earlier in this thread using a B-fly to roll up. deleted it now but was trying to substitute another chart...hope no one minds...
Phil will post his numbers later, but in the meantime, here are the numbers for an EW diagonal I have going off the board today. 9/15 ES 1332 sold SEP EW1350C for 2.30, bot OCT ES1370C for 2.30, net debit $0. As the mkt moved up on 9/20, the spread hit its max loss, which was about (1.10). When SPX dropped the next day, the diag went to a profit of 0.20 or so. This again dropped to (0.75) as SPX climbed early this week. The last 3 days of this week have been perfect for a call diag, i.e. flat. As the value of the EW shorts has drained, the spread has moved to 2.60. At today's end, I am expecting the spread to finish at about 3.40. Of course, if we jump up a few points over ES1350 this afternoon, hilarity will ensue