hey coach and others, please forgive the ot question. I am looking at a stock currently trading bid 29.64 ask 29.68 jan 35 puts bid 3.4 ask 4.3 why couldn't I just buy 100 shares $2968 buy 1 jan 35 put $430 total debit -- $3398 excercise the jan put for $3500 $102 gain- comm and excercise fees. what am I missing??
Something is wrong. Either quotes are stale (possible if your source is Yahoo). Or, the option is the result of a spin-off and the underlying is NOT 100 shares of stock, but instead is 100 shares plus some quantity of another stock. Mark
hey mark, I just figured it out. I think the option quotes were just stale. my quotes are from ox, but after looking further there is no open interest in these contracts. If I bid the 4.3 for the jan 35 put, there will be no sellers. thanks. newbie
http://www.hoadley.net/options/develtoolsoxlanding.htm Yes, 100 symbol limit though. I believe it's Hyperfeed repackaged somehow. As per link above and other Hoadley docs, specifically Strategy Evaluation Tool. Account -> Profile -> Trading & Website Preferences: Site Access Via Software/XML API -> Check box. Save changes. Good luck! MoMoney
For November, I will be looking at vertical credit spreads on the call side with strikes around 1425 if available for a decent credit. Time is at 28 days to expiration so I doubt I wil find much... On the down side, nothing above 1300 for the puts. If you are looking at diagonals for DEC/NOV I think 1400 is a good short strike and on the downside 1320 or thereabouts.
Test Trading the Following Diagonal: BTO DEC SPX 1415 Call STO NOV SPX 1395 Call STO NOV SPX 1325 Put BTO DEC SPX 1305 Put Net Debit = $4.55 (Thinkorswim good fill with spread mid at $3.70 and natural ask at $5.50) Never did the double so I want to test it out with 1 at a cost of $455.00
Phil, I don't believe you can learn much from a test like this. It only shows the result from one specific example. Mark
It is the only way to start really... I am also comparing it to a cross strike FLY and also comparing adjustments so one month is not definitive but I can only do em one at a time lol. Interestingly enough, the risk graph is very similar to a double cross-strike Fly using OTM puts and calls. So I want to see how they interact or correlate and what adjustments there are. I will add more to it once the OCT expires and JAN becomes available.