Diogenes Decisions

[diogenes]

A few picks for a couple of weeks

WNR
BIG
TSO
HOC
MIR

Now, for a bit of option fun.

http://en.wikipedia.org/wiki/Straddle

However, I must admit to be somewhat interested in how the pricing works out in incomplete markets and if option types impact the straddle.

That said, the straddle is a way to take advantage of a potential big move in the underlying.

[IIC]

A few picks for a couple of weeks

WNR
BIG
TSO
HOC
MIR

Now, for a bit of option fun.

http://en.wikipedia.org/wiki/Straddle

However, I must admit to be somewhat interested in how the pricing works out in incomplete markets and if option types impact the straddle.

That said, the straddle is a way to take advantage of a potential big move in the underlying.

Take the long straddle or strangle...I've always found that very interesting and even made some bux doing that back over 15 yrs ago...But you can lose it all if the stock doesn't move.

[diogenes]

Take the long straddle or strangle...I've always found that very interesting and even made some bux doing that back over 15 yrs ago...But you can lose it all if the stock doesn't move.

Well, yes; hence, the neat payoff diagram.

I should add the sensitivity to the greeks here will determine what a big move is.

[diogenes]

Well, I have been somewhat low key in trading as a result having to pay for what I consider to be the worst broker: Zecco:
Let me count the ways:
1. Lost withholding papers twice
2. Margin account did not appear till about a month ago; yet it was set-up many months ago
3. Imaginary positions appeared in my account that really made it hard to trade around, .e.g, I closed out one position, but then it went long by twice the original amount, then changed to short the next day…
4. Account amounts turned up by a factor of four after hours for no reason
5. Account amounts turned negative after five by a factor of ¼
6. Margin Calls for positions that I did not have
7. Withholdings still…


This broker is not Huge.

[skiracer]

[quote=diogenes;80786]Well, I have been somewhat low key in trading as a result having to pay for what I consider to be the worst broker: Zecco:
Let me count the ways:
1. Lost withholding papers twice
2. Margin account did not appear till about a month ago; yet it was set-up many months ago
3. Imaginary positions appeared in my account that really made it hard to trade around, .e.g, I closed out one position, but then it went long by twice the original amount, then changed to short the next day…
4. Account amounts turned up by a factor of four after hours for no reason
5. Account amounts turned negative after five by a factor of ¼
6. Margin Calls for positions that I did not have
7. Withholdings still…

And you still have an account with them after all of that?

[diogenes]

Well, yes in the sense that I think there are withholdings that I need to get back (this is going slowly).
Yet, no in this sense that I have any positions with them that have not been closed out or in the process of being moved.

[skiracer]

Well, yes in the sense that I think there are withholdings that I need to get back (this is going slowly).
Yet, no in this sense that I have any positions with them that have not been closed out or in the process of being moved.

I would report them to the SEC or whatever governing board takes care of that and get away from them as quickly as I could. There should never be any mistakes.

[diogenes]

I would report them to the SEC or whatever governing board takes care of that and get away from them as quickly as I could. There should never be any mistakes.

Oh yes, no issue with that at all.