Recent content by glasshopper

Although its not my place to give investment advice, should you need help with the defintion of an option I suggest you visit the investopedia website where a definition will be supplied to you. A lnk is provided below. http://www.investopedia.com/terms/a/atthemoney.asp I avoided using theta...

what is your problem with what I've said perhaps using americanisms has confused you? Out the money = Option Has no value and is far below the strike In the Money = Has value value but below the strike At the Money = At the strike at the strike or above The above is for a call option it...

Implied volilitity in this case meant another client placing a rather large bet and skewing their book. How does a customer apply a pricing model against this?

I hope I'm correct but the daily is based on the cash and expires or rolls over at the end of the day. No further discussion needed there :-) The futures are based on the futures contract for that particular instrument & month and traded at 'fair value' which is why the price is different to...

MY whole point is that they don't expire against the underlying only at expiration which makes it pretty pointless exercise trading them if the rest of the day the have been trading in accordance with profit/loss of the options desk

It all depends on the strike. If the strike is in the money but not at the money the decay will just kill any profit as will any move against you. If you have traded IG's options you'll see how much you lose as the day gets longer and smaller & smaller movs against you wipe bigger & bigger...

if they fix price once every day - and i don't know how often they do but I do know that they do - how are you supposed to know when it is it will happen? Or by how much? If you want to hedge your portfoilio risk against the underlying? Wait until it doesn't happen and risk bigger losses on...

hedge a hedge? hmmm I would only hedge a put/call as a writer and IG require the same deposit margin as trading the instrument itself except the rate of profit is less even including the premium so its better not to write an option but buy the underlying so shorting the option isn't a very good...

I woukdn't go anywhere near ANY of IG Indexes daily options or for that matter, any of their option products. They are all a complete rip off. ALL OF THEM including their binaries, ladder, or dailies which they promote very hard and if you trade them you will see why. The reason, well they...

i posted this elsewhere but it could go here too I woukdn't go anywhere near ANY of IG Indexes daily options or for that matter, any of their option products. They are all a complete rip off. ANY OF THEM including their binaries, ladder, or dailies which they promote very hard and if you...

I woukdn't go anywhere near ANY of IG Indexes daily options or for that matter, any of their option products. They are all a complete rip off. ANY OF THEM including their binaries, ladder, or dailies which they promote very hard and if you trade them you will see why. The reason, well they...