Recent content by StewartC

Q10) Where can I get the Volatility and the Interest Rate for the option calculator from? Implied volatility, while an input to the Black-Scholes pricing model, can actually be regarded as an output of the calculator, so the best source is to derive it from other option prices. Input an IV...

Q9) Do I need a data packages from IB for buying or selling Options? IB pass through charges for real-time data, most 15-minute delayed data is free. If you are trading bog-standard options 6 months out, you will not need to pay for real-time data.

Q8) What about the loss over time? I mean in case of buying a Put- or a Call-Option? ...how can I estimate these time-losses or schedule it? What is the best duration if I want a minimum Time-Loss (when i think my target will be reached in 6 months). Extrinsic value of the option will decay to...

Q7) And how do i have to insert my ideas / trades into the "input mask" of IB? Ask IB or watch their tutorials - there are hours of them: https://www.interactivebrokers.co.uk/en/index.php?f=14509#videos Us a VPN if you can't access from your country.

Q6) What would be the best way to Profit, if I have the Opinion that the "DOW JONES" goes down from now to about 6000 till the end of 2017.???? Take a look at LEAPS on SPX. Maybe look at hedging with some shorter term calls to create a wide calendar spread and/or reduce cost...

Q5) What should I do, so that I may never get in the situation that i ruining my account? And that I never have to pay extra? From experience? Never ignore or move a mental stop loss. Keep excess margin, and if it gets low, top up or close some positions so that you don't get spiked out.

Q3) How can i calculate my Risk in all of these cases (1 to 4) and (a to e)? Could you give me an example for each? Absolute risk will be determined by lot size and stop loss. Risk of loss will depend on price action and volatility/change in volatility (gamma) and time decay (theta). Q4)...

Q2) In which of these cases (1 to 4) is the price of such an Option - particularly affected - by a change of the volatility? The VIX is the best-known volatility measure, on the the volatility of the S&P 500 index. There are similar VIX measures for other instruments, including gold, currencies...

If you have an account with them, you should be able their help function! https://www.interactivebrokers.co.uk/en/index.php?f=14509#webinars Here are soe of my bookmarked info sites: http://www.optionseducation.org/en.html http://www.investopedia.com/terms/o/option.asp I will try to answer...

IB do a whole series of recorded and live webinars on the use of their platforms. You could join one of these and ask your questions. On your specific questions on instruments and margins, their live chat function is ok for these.

Buy to open a put - you have a position in the market Sell to close that same put - you have no position at all, you no longer have any exposure. Examples: If you simply hold shares in a stock - you have a naked position If you also write (sell) a put (or call) on that stock - your position is...

If you sell to close the put you bought, you won't have a position at all. Sorry to confuse - naked typically only refers to selling options first without cover, but my point is you can have significant risk in speculative buying.

Yes. You can trade FTSE index options (Z) or options on liquid ETFs like SPY, DIA, or DIA for the US indices.

1. Depends how you define risk. Yes your max loss might be limited, but buying a far-OTM option may have only a 5% chance of profit at expiry, so high risk of total loss. Selling a put on a quality, low-volatility stock is arguably lower risk. 2/3. Naked means without a position in the...

You are right. Your loss is limited to the premium you paid, max loss if FTSE is above 5800 at expiry.