Recent content by xx765

with a lot of underlying, say an total return index, an ITM spread is just the same as the OTM spread (put-call parity), only harder to trade as ITMs are quoted wider than the OTMs on the same strike. where put-call parity doesnt apply, it's only tricker to trade ITMs. All in all, not a good...

It depends on which specific FSA exam you were talking about but I think if your trading is not involved with any client you don't need to take most of them. I trade for a prop shop so only risking the partners' capital, all I'm required to do by FSA is the so called anti-money laundering exam...

brilliant. should be very pround making maximum possible payout on your option.

Best thing to do is to call the exchange and ask.

There are. Options on gilts futures are traded on Liffe.

The idea is right but practically it`s pretty hard to do. trackers normal track the benchmark rate while options are normally on bonds or bond futures. bond yield moves with benchmark rate but not in 100% correlation so the hedge is not perfect although probably good enough. a bigger issue is...

The put by definition gives you the right to sell BGP shares for 1 dollar. This doesn`t change no matter what happens to the underlying company. You I`m guessing the options you bought were physical settled so you need to get hold of BGP shares and exercise the puts on expiry. Probably easier...

dmeista is 100% right. If any firm knows a consitent way of making money, why would they teach everyone else instead of hire a couple of guys and secretly collect all the money for themselves? I work for an options market maker in London. Trust me the edge professional traders get over retails...

I suggest you study options theory a bit better so you utilize your strategies more efficiently and don't get involved in the risk that you did not intend to take. for example strategy 1, what's the idea behind using a bear call spread instead of a simple put spread? they are the exact same...

the method you invented is actually all you need for the numerical bit

Honestly if one has to practice to pass these tests he probably won't last even if he manages to get hired. Training program is way more difficult than these tests.