Some related posts from Technorati and Google.
[Optionetics] Understanding How RUT Options Are Settled: So, when the market opened on the third Friday, the opening price was 774.40 and Bok might have thought that his call spread would expire worthless, and he could happily keep the credit. This is the danger I have been talking about.
[Trading for the Masses] Data Feed: While the American company has successfully landed exclusive contracts that make just one carrier the official iPhone host in France, Germany, the US, and the UK, a clause in Australia’s Trade Practices Act against forced line bundles may prevent Apple from signing an exclusive contract in the southern country. Whether this is necessary may depend on a review from the Australian Competition and Consumer Commission before any deal can be approved.
[Condor Options] How to Hack Options Spreads: Note: just to be clear, we don’t endorse any one broker or group of brokers. Many people say that thinkorswim has the best retail options trading platform around, and we’re inclined to agree.
[topforex.info] Option Trading ? Thinking ?Outside The Box?: With a daily trading volume of over $1.5 trillion, the spot FOREX market can absorb trading sizes that dwarf the capacity of any other market. In fact, when compared with the $50 billion daily market for equities or the $30 billion futures market, it becomes quickly apparent this gives you, and millions of other FOREX traders, almost infinite trading liquidity and flexibility.
[GMoney's Crib] HBC -18%: 2.This is a credit spread, so we had margin involved. This makes the trade that much more riskier when it goes against you.
[marketneutraloptions.com] RUT (Russell 2000 Index) Iron Condor initiated on 8 Jan 2008: When that bounce happen, we may look to close up the put spread with a smaller debit. If we can close it at $1.80 or even $2, and signs are that the bounce is a dead-cat bounce, we should be glad to close it and lock in a small profit.
[Condor Options] The Volatility Edge in Options Trading (Review): Most traders succeed in beating the bid-ask spread less than 50% of the time…A trader who can reliably predict short-term 50-cent price changes should have no interest in structuring complex option positions because day trading of stocks would provide a superior return. Likewise, if a trader does not believe that he or she could generate a profit through very rapid day trading, that person should not expect to beat the bid-ask spread either. Professional traders generally caution against legging in and view bid-ask spreads as a cost of doing business.
[Traderbill's Financial Markets Weblog] 2/19/08”¦as we were saying (published Feb. 18): …TB feels like Bill Billichek (aka Trader Bill Billichek…the traitor of the Patriots?), known for sneaking films of sideline signals from the other teams (nothing strange in that if you work on Wall Street, right?), or General George S. Patton when he exclaimed: “Rommel …I read your book!” Look, TB isn’t all that bright…he just paid attention to trading patterns and what happened a month ago at options expiry…incredibly similar even to the point have preceding a national holiday.
[Squid Options] Michael Trader: In a vertical spread such as a bear put spread, you have two options One long and one short at different strikes for the same expiration. Say the volatility of the option falls and the option you purchased falls in price.
[money blog] New conforming limits - what will it do to jumbo loan rates?: If the securities dealer association that governs MBS decides to allow some or all of these larger balances to go into “TBAs”, we could expect a reduction in the spread between agency and non-agency mortgage rates - but mostly because today’s agency balances would be penalized. In other words, the spread between today’s agency and non-agency note rates would likely decrease, but only because today’s agency rates would increase as investors lose interest in TBAs.
[Dysis Oleg Blog] Wheelie Wednesday? [UPDATED 4:07 PM CT - HINDENBURG!]: “Shares of some mortgage lenders fell Wednesday as investors worried that problems in the subprime mortgage market could spread more widely in the industry. “If it gets worse, the next area to see losses and price declines is the alt-A market,”
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