Wednesday, December 1, 2010

weekly options and other TOS stuff

WEEKLY OPTIONS

makes it affordable for expensive underlyer (which also has expensive monthly options)

be sellers - take advantage of faster time decay

learn more on this...



OTHER STUFF

use sizzle index on your positions with MarketWatch. If the index is 1 to 2 or 3, it's a quick way to know nothing major has happened in your instruments. If you see, over 30 or 50, something is happening, take a look and maybe do something.

when trading spreads, the price defaulted by TOS is actually MID PRICE (which is good, protects you). If you go to NAT (natural), you are alomost always overpaying.

VIX futures are coming soon

Usually, close positions a few days (4 or 5) before expiration cuz after that, risk increases sig

when shorting singles or spreads, how to understand "assignment" scenarios?

my question of "how to chart/see history of IV relevant to your trade (single or spread) as opposed to composite IV" was not answered yet. They proly didnt see it

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