Plain Vanilla Options Trades.

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Grant

American style options will always comply with put-call parity, otherwise there would be an arb. Implied volatility is calculated using the “forward” price of the underlying (spot – dividend + interest rate), so where there is a dividend due before expiry the ITM Put option should trade for less than intrinsic, but can’t because of the need to comply with parity. This has the effect of driving up the put IV when compared to that of the Call. Can be quite prevalent when a div is due a few days before option expiry.

I think that’s what you’re asking anyway ?
 
There shouldn't be any material difference between same strike IV with European options. If it is observable, it's probably down to the option price used which may be subject to a slightly assymetric bid / ask.

And yes, how much nicer / interesting / informative it is without the reisdent loony(S).
 
US opening weak.................
A second day in the red going into the weekend?

jog on
d998
 
et al

VALUE.......................................... 6,228.00
CHANGE...................................... -41.3
% CHANGE................................ -0.66
TIME .............................................11:36
TOTAL MEMBERS..................... 101
UP................................................ 22
DOWN........................................ 79
UNCHANGED........................... 0

So a fairly broad based fall.
What [if anything] happened to the IV?

jog on
d998
 
To the moderators:~

You see what I mean ?

Why should I have to put up with this persitent provocation from Profitaker ?

Why ?

I am too bizzi already to have to put up with this.

You should ban Profitaker for one month so we can all get some peace and progress with this thread, or at least if you do not want to ban him prvent him from posting here. He can post his abuses and grafitti elsewhere.
Thank You.
__________________

WHY SHOULD YOU GET PREFERENTIAL TREATMENT SOC I ASKED YOU POLIGHTLY IF YOU WOULD NOT USE BOLD FOR ALL YOUR POSTS AND MY REPLY FROM YOU WAS ANYTHING BUT POLITE

To the mods I have been interested in reading this thread and the contributions from Dashingblade and profitaker have been interesting so lets have the site rules applied across the board

To Soc quite why you require such a platform to prove the point of writting puts is beyond me but unless you answer all questions put to you and thus make the trades totally transparent including goals risk margin etc then this can be no more than a pointless excersise
 
A Dashing Blade said:
Well, it's observable that this is usually the case (FTSE Options) ie June 6425 calls are 11.68-12.12 (bid/ask iv) while puts are 12.28-13.59

As to why, I'd hazard a guess that it's to do with those options being priced against the futures rather than the underlying. Obviously the future may not be trading at fair value.

(Apols for being unable to provide a definative but it's been over 15 years since I was involved in these instruments)

For comparison, lets take a fictional trade buying those June 6425 calls 50 lots For 12, thats £6,000.00 outlay or £60,000? lol crikey sorry, bit dim or just not knowing here.

Can we get the notional trade amount and follow it, seems a sensible thing to do to comapre it to the writer to monitor at least a notional bull call buyer , yes?

£6,000.00 isn't it?
 
Crap Buddist said:
For comparison, lets take a fictional trade buying those June 6425 calls 50 lots For 12, thats £6,000.00 outlay or £60,000? lol crikey sorry, bit dim or just not knowing here.

Can we get the notional trade amount and follow it, seems a sensible thing to do to comapre it to the writer to monitor at least a notional bull call buyer , yes?

£6,000.00 isn't it?

I reckon those calls will be trading 50-60 over the next couple of months giving a whopping 400-500 % Gain. Lets see that Writer start twitching when the Index is trading 6500.

I reckon a poetic number of the beast, plus one identical, to liquidate these "Puppies" based on the underlying of 6666 should do this one, justice. :)
 
dc2000 said:
WHY SHOULD YOU GET PREFERENTIAL TREATMENT SOC I ASKED YOU POLIGHTLY IF YOU WOULD NOT USE BOLD FOR ALL YOUR POSTS AND MY REPLY FROM YOU WAS ANYTHING BUT POLITE

To the mods I have been interested in reading this thread and the contributions from Dashingblade and profitaker have been interesting so lets have the site rules applied across the board

To Soc quite why you require such a platform to prove the point of writting puts is beyond me but unless you answer all questions put to you and thus make the trades totally transparent including goals risk margin etc then this can be no more than a pointless excersise[/QUOTE]

So you consider yourself to be the benchmark of good manners, the personification of grace and the manifestation of wisdom and the arbiter of taste indeed ?

I have news for you, you are nothing of the sort.

You have been a persistent nuisance to me since I joined this website. A real pest.

My reply to you was not rude, it was playful, but of course you put your own brutish frame of reference on things totally out of context with everything.

For your benefit and for the benefit of everybody here, I will say it again.

I am not interested in teaching any of you anything.

I am not interested in discussing greeks, or volatility, or fundamentals, or margin, or brokerage, or the underlying, or intrinsic value, or decay, or any other stuff.

I am not interested in discussing any of that. I am not.

I am not interested in teaching any of you, because obviously all this prodding is not intended as discussion pure and simple; it is intended to extract information, by whatever means, fair means or foul means.

But I am not succumbing to this persistent prodding that has become the hallmark of this thread, and I will not do it, not because I cannot, but because I will not, because I don't want to, because in any event you do not deserve it as you show yourselves to be unworty by your public conduct, so there you have it. Now you can go and call it petulant or whatever but I don't care.

All of you through your conduct have taught me not to care.

As an aside, when I first read the biographies and autobiographies of famous traders, bankers and fincanciers, I was stunned to read how mean they all were and would not give anyone a tip on a stock or any information that would help the man in the street to make a dime.

I was horrified and amazed. I really was...

But very slowly, over the years I have come to understand and realise finally the reasons that drove them and what caused them to adopt these draconian attitudes.

All of you, (well nearly all) have rendered me a great service by teaching me a lesson.

The lesson is not to be generous with one's hard earned knowledge and expertise acquired at great personal cost over a very long period of time involving great expense, endless work and many setbacks along the way.

I am not here to teach any of you. Period.

As an aside, I am not a vendor. I own my own software. I have it written for me and I use it for myself and the guys and girls in my circle. I am not interested in merchandising.

Now you in the past have been particularly nasty to me on every occasion that has presented itself to you.

You have never liked it when I have contradicted you and proved you wrong and you have replied with venom. This puzzled me for a very long time.

I have tonight found out the reason...... It is very simple.

It has to do with your perception. Your own warped perception.

I am informed you are the vendor of software via your website.

Apparently this software is callled Genesis.

I could not care less what it is purported to do or not do, or whether included in the price, which I am informed is in the region of £350 is the additional bonus that it will make the tea as well or provide you with your daily horoscope... also. I am not interested except you ought in all fairness to display a vendor tag.

I am absolutely fed up with the lot of you, continiously behaving like badly brought up children.

My interest is in line with the object and title of this thread, my thread, and my interest is exclusively in line with it and nothing else.

Many of you see fit to use it to post your graffitti, your insults, and your improper opinions.

The object of this thread is to prove conclusively the Writer of options has the edge over the Buyer, nothing more and nothing less. except for people who wish to post here first of all to respect the object of the thread and behave properly and additionally to vote.

W those in favour of the writer having the edge over the buyer.

and

B those in favour of the buyer having the edge over the writer.

All else is of no interest to me.

If you all want to talk about is calls and mrgins and futures and whatnot go and post somewhere else, not here, I hope I will not have to tell you again, otherwise I will move this discussion to another website, you all know I mean what I say........ and I say what I mean..... and I do not hesitate to act if I so decide.

Now have a nice weekend.

Thats all.
 
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So you consider yourself to be the benchmark of good manners, the personification of grace and the manifestation of wisdom and the arbiter of taste indeed ?

manners Yes benchmark No

My reply to you was not rude, it was playful, but of course you put your own brutish frame of reference on things totally out of context with everything.

A fine line and all that

I am not interested in teaching any of you anything.

I am not interested in discussing greeks, or volatility, or fundamentals, or margin, or brokerage, or the underlying, or intrinsic value, or decay, or any other stuff.

I am not interested in discussing any of that. I am not.

I have not asked you and do not require you to teach me anything. I was merely posting my observations

I am informed you are the vendor of software via your website.

Apparently this software is callled Genesis.

I could not care less what it is purported to do or not do, or whether included in the price, which I am informed is in the region of £350 is the additional bonus that it will make the tea as well or provide you with your daily horoscope... also. I am not interested except you ought in all fairness to display a vendor tag.

To correct you, The price was £150 but for £350 I will throw in a box of PG Tips, as for the vendor tag I believe this is if you are a current vendor and not that one has been a vendor in the past ( I am prepared to be corrected by those who run T2W if I have this wrong)


It might have been easier to have a poll rather than asking peeps to post w's or B's
In this instance I would choose W but I would consider it a high risk and would prefer to buy the option against a futures position
 
dc2000 said:
manners Yes benchmark No



A fine line and all that



I have not asked you and do not require you to teach me anything. I was merely posting my observations



To correct you, The price was £150 but for £350 I will throw in a box of PG Tips, as for the vendor tag I believe this is if you are a current vendor and not that one has been a vendor in the past ( I am prepared to be corrected by those who run T2W if I have this wrong)


It might have been easier to have a poll rather than asking peeps to post w's or B's
In this instance I would choose W but I would consider it a high risk and would prefer to buy the option against a futures position
Thank you for your vote.

Like everything in life, nothing is high risk if you know exactly what you are doing and why.
 
SOCRATES said:
Rubbish.

I have told you several times to go and get yourself a job.

I am beginning to discover nobody wants you.

By the end of the week I will finally find out totally why.

Part of it is already evident, at least it is evident to me if to no one else.

Are you by any chance involved with one of these silly tribunals idiotic people go to. to make a song and dance at when they are justifiably sacked ?


I agree with you Socrates. I don't know a thing about options, but Profitaker has hounded you consistently to put your money where your mouth is. When you do, he claims it isn't your mouth!?

Well done Socrates!

I am going with W seeing you are the artist who paints them! ;)
 
Profitaker said:
Baron

The image address was e-mailed to me by a third party. Since I firmly believed the Soc was posting up Bulldozer's trades anyway, I didn't check the dates as it was merely confirmation of the obvious. Had I checked the dates I would have seen this not to be the case. So yes, I retract the "evidence" as it were. However, I'm still firmly of the opinion that Soc is posting up Bulldozer's trades. And after all, I am entitled to my opinion.


In another thread you said you ignore Socrates because he posts nothing of interest :rolleyes:

Yet here you are in a thread started by him making baseless accusations :rolleyes: :rolleyes:

I don't need to know anything about options to recognise that you have posted nothing useful in this thread.

I don't like to incite flame wars but you are a hypocrite..this is plainly obvious
 
new_trader said:
In another thread you said you ignore Socrates because he posts nothing of interest :rolleyes:

Yet here you are in a thread started by him making baseless accusations :rolleyes: :rolleyes:

I don't need to know anything about options to recognise that you have posted nothing useful in this thread.

I don't like to incite flame wars but you are a hypocrite..this is plainly obvious
I am "in a thread started by him" because there are many other interesting posters here discussing a subject which interests me. As for Soc himself well, he is beneath contempt, so I'll leave it there.
 
new_trader said:
I agree with you Socrates. I don't know a thing about options, but Profitaker has hounded you consistently to put your money where your mouth is. When you do, he claims it isn't your mouth!?

Well done Socrates!

I am going with W seeing you are the artist who paints them! ;)

new_trader said:
In another thread you said you ignore Socrates because he posts nothing of interest :rolleyes:

Yet here you are in a thread started by him making baseless accusations :rolleyes: :rolleyes:

I don't need to know anything about options to recognise that you have posted nothing useful in this thread.

I don't like to incite flame wars but you are a hypocrite..this is plainly obvious


Now . . . I recognise that posting style.
Quick check thru previous posts . . . . yup, fust time new_trader has ever used smilies . . . .

Bullsh*tter stealing p/w's from his old site again?
 
New Trader,

” I don't need to know anything about options to recognise that you have posted nothing useful in this thread.”

Criticise when you are qualified.

“you are the artist who paints them”. Fawn.

Grant.
 
Profitaker said:
DB

It's not Bullsh!tter, because he wouldn't be able to spell such complex words as "hounded" "consistently" "hypocrite". Neither would he be able to make correct use of apostrophe’s. Also Bullsh!tter has the writing style of a screaming 5 year old, whereas the one above is more aligned to that of a calm 10 year old.

Nah, definately not Bullsh!tter.

Which goes to show that Socrates is not a snob in his choice of friends. :)

Split
 
Profitaker,

“the dividend stream from the 100 constituents will never be more than the cost of carry”.

Assuming you’re referring to the FTSE 100, isn’t the dividend yield irrelevant given the underlying is cash settled and doesn’t pay a dividend?

This ‘seems’ to be borne out by the fact that while the Black-Scholes model includes subtracting the div yield from the risk-free rate, the Black ’76 model (for European index options) does not include the yield as an input (although the underlying future indirectly accounts for, or reflects this)?

Mr Blade (may I call you Dashing?),

Re the old LTOM. I went here a few times to meet our floor brokers ( I was also due to become an ROT but never happened) . Do you remember Sheppards (Paul Sherrin?), volume control on their jackets, and an MM called Bolitho (from an old, wealthy Cornish family, I believe). What happened to them?

Grant.
 
Splitlink said:
Which goes to show that Socrates is not a snob in his choice of friends. :)

Split
Oh...but I am...but you need not worry as you are not included among them...:LOL: ...and don't forget I am the gatekeeper, just in case you have forgotten...:LOL: ...in three months or less you and all your chums here will be begging me to open it and let your in...guaranteed....you'll see...and I will refuse to open it...:LOL:
 
SOCRATES said:
Oh...but I am...but you need not worry as you are not included among them...:LOL: ...and don't forget I am the gatekeeper, just in case you have forgotten...:LOL: ...in three months or less you and all your chums here will be begging me to open it and let your in...guaranteed....you'll see...and I will refuse to open it...:LOL:

You don't know what you are missing but, in any case, I think that I will survive that dubious distinction.

In the meantime,take my advice and spend it while you've got it.

Split
 
grantx said:
Profitaker,

Mr Blade (may I call you Dashing?),

Re the old LTOM. I went here a few times to meet our floor brokers ( I was also due to become an ROT but never happened) . Do you remember Sheppards (Paul Sherrin?), volume control on their jackets, and an MM called Bolitho (from an old, wealthy Cornish family, I believe). What happened to them?

Grant.

We also used Sheps in my broking days, Paul was the boss, the blonde girl was #2 (went on to marry one of the Dutch guys out of Van Der Moolen??). Certainly remember Jeff Bolitho, he speciality was index options if you remember, a seriously nice guy, used to commute up from Cornwall on Monday, come to think of it I did hear some gossip about him relatively recently but it's slipped my mind atm.
 
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