Recent content by inertia_trader

Perhaps this is a naive question, but don't most UK-based banks & brokers offer access to the U.S. markets? What advantages does opening an account with a U.S. firm offer to a UK resident (besides maybe geographic diversification of one's assets, which I certainly can understand)? Regarding...

If you're going to play faux-market maker, you better have a lightning-fast way to move your bids and asks around quickly as the underlying moves. Undoubtedly, the market will have plenty of time to move around quite a lot while you're waiting for someone to pounce on your bid or offer in an...

A valid point, boba15. The more I think about it, what I described is really more akin to a call option on the spread, plus a strangle on the components. It has strangle characteristics since if both markets were to zoom to the Moon (or fall down the cliff), I would make a lot of money (even...

Here are 2 ways to do it: 1. Long call(s) on ES + long put(s) on NQ. In choosing the strikes, make sure that delta(ES calls)/50 = -delta(NQ puts)/40 2. If you find yourself favoring the in-the-money strikes in method 1, it's worth checking the synthetic equivalents for tighter...

Not a bad idea as long as one is mindful of the fact that below the strike of the ITM call, all the downside risk of the long stock position still remains. Also, the bid/ask spreads of deep ITM calls are often pretty wide. He might have to offer the call for below intrinsic value to get his...

Since you're not approved for spreads, the only choice you have is to buy back your short call. You would then be in the clear to sell your stock.