Synthetic straddles on pit traded futures contracts?

Sometimes I get fixated on an issue and tend to ignore enlightened reasoning.

 

You saw my last on the F&O board. Good 'ol hedgefundtrader2

 

I find him to be the epitome of an internet lacky. The 65 page rant about how he forces the market makers in the SPX to fill him was hysterical. No matter how many times the rules were posted he still screamed and yelled about how he was right.

Yahoo is worse

 

Amen.

Do you have any info on the AMEX FRO binaries?

 

Whoops, I didn't notice until now I posted gamma in the first-sentence, even though I repeated it a dozen times. In my head I was thinking of post-trade greek * Px sensitivity. Apologies to commie as well.

 

Heh. If I had a nickel for every time my brain auto-corrected something I wrote while I was trying to proofread it...

 

I have a micro-deletion on my proofreading gene.

 

Are you all saying that long 20 straddles = 20 puts + 1k long stock ?

 

I think you mean to ask if long 20 straddles = 40 puts +2k long stock. My answer would be that both positions give you the same amount of gammas at the same strike, and the same delta - so for all practical purposes, yes. There may be different margining implications, etc.

 

As DMO stated. For a long straddle using puts it would be long 100 spot and long 2 puts. It's equivalent to a 1-lot long natural straddle.