Recent content by tripleogstar

The gilt futures prices are essentially representing the delivery of a bond on expiry of the futures contract. On the LIFFE website it should say what the deliverable bonds are, I believe the maturity of the cash bond has to be between 8-10yrs. There is a basket of deliverable bonds, but on...

This is a good read, don't know if someone has already posted it. It is fairly old: News Headlines Andy Xie - Wikipedia, the free encyclopedia

well there is a simple solution, hedge your delta exposure before expiry and you will be flat shares after expiry. Secondly, in practice it doesnt work like how you described: will the put option be assigned to me first so that the long shares received from the short put can be "called in" and...

options are a great way of making money, unlike most financial products. You can make a fortune from the market moving a lot or the market not moving at all.

I meant BS in the sense that he says the following garbage: Also, realise that options are incredibly complicated so you better know your enemy, ie the people on the otherside of your trade. Assume they're hot, assume they REALLY know what they're doing, and assume they've been in the game a...

What a stupid topic, what sort of crack head sits there thinkin, 'I wonder what frustrates people about options trading?', I would have some respect for you if you said something along the lines of I hate options trading because vol movements erode your p/l, what does everyone else think is...

what a foolish thing to say that you can make guaranteed income from ITM call spreads, why don't we all do it and become billionaires. dumb ass. First of all , not all ppl are as dumb as you and what market maker would sell you an ITM call spread for less than fair value? In equities the value...

No.Expiry is at one moment in time, everything that needs to be exercised gets exercised and everything that needs to be assigned will be assigned. Just out of interest, why on earth does it make any difference if they do one before the other?

anley stop talking BS you fool

Another point regarding most of the order flow in the STIR futures market is orders from STIR options traders. Big funds like brevan, tudor and obviously a lot smaller ones all trade options, the market makers taking the other side of this trade need to delta hedge, so it is not unusual to find...

short sterling futures are simply the 3m forward rates plus the 3m credit risk (i.e FRA-OIS spread). Pre crisis people used the short sterling strip to calculate what the 6m forward rates, 8m forward etc. In their caclulation they used 3m credit risk by doing this because embedded in each...

don't understand how u can sell hedged calls and expect to offset the loss on the short puts, because you would have to sell the calls in a later expiry. If your short a put and its close to the money you will not know until the last second of trading whether or not your going to be assigned on...

please tell me you understand now, coz if you don't I give up and you should actually be banned from this forum for being so damn incompetent

let me give you a basic example since it is clear your are incompetent. Stock A = 100, 110 strike call option = 5 (for example) with a detla of say 30%, the price of stock A goes to 105, the new price of the call option is 5 + 0.3*(change in underlying = 5), therefore the new price of the call...

LOL ooo my god when will you get it. DELTA IS THE SENSITIVITY OF THE DERIVATIVE, TO THE PRICE OF THE UNDERLYING!