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2answers
36 views

What happens when a calendar spread is assigned in a non-margin account?

A well-known option investment strategy is the so-called "calendar spread", which involves buying and selling options on the same stock with different expiration dates. If the strike prices are also ...
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4answers
51 views

Value of a call option spread

In this example: An options trader believes that XYZ stock trading at $42 is going to rally soon and enters a bull call spread by buying a JUL 40 call for $300 and writing a JUL 45 call for $...
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2answers
61 views

Why buy a vertical spread if I could instead buy a naked call?

If I believe a stock will go up, say from a price of $100, and I wish to execute an options strategy that would make me money if the stock were to rise, why would I want to setup a vertical spread ...
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0answers
35 views

Margin required for this no-loss credit spread strategy

Look at the pnl graph in this link. I created a credit spread by buying one ITM put contract for $300 (-$30,000) and sold 50 x OTM put contracts for 10 (+$50,000). So the strategy has a credit of $...
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0answers
14 views

Bid ask spread on a mutual fund containing derivatives

On mutual funds with bid and ask prices, It is my understanding that these prices should be close to the bid and ask prices of underlying securities according to their weights in the fund, divided by ...
2
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1answer
64 views

Ex-dividend dates for Nikkei and Dow Jones on CFD and Spread Bet Markets?

I've found a few ex-dividend date sites for the Dow Jones (can't find any decent ones for the Japanese Nikkei Index). However the ex-dividend dates don't seem to match when I get dividend payouts on ...
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2answers
35 views

Is there an online tool to help purchasing option spreads? [closed]

I'm pretty new to futures trading and I'm wondering if there is an online tool to help look at various spread options contracts? I'm interested in getting some experience trading futures with pretty ...
0
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2answers
110 views

New to options trading and need help understanding an options spread risk graph. What am I missing?

Suppose the stock is $41 at expiry. The graph says I will lose money. I think I paid $37.20 for (net debit) at this price. I would make money, not lose. What am I missing? Thanks for all your input, ...
3
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1answer
686 views

What does “compression of spreads on high-yield debt” mean?

What did Federal Reserve Chair Janet Yellen mean when she said the following? "We’ve also seen the compression of spreads on high-yield debt, which certainly looks like a reach for yield type of ...
0
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1answer
32 views

Clarification on options jargon regarding spreads

Is it true that a bull put spread is the same as a credit put spread. Because if I am bullish, I wont be buying the put spread, I will be selling it, so it has got to be a credit spread. Similarly , ...
3
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1answer
314 views

In what ways is IEX different than a typical dark pool or a typical exchange?

In his recent best seller "Flash Boys" (#1 of the NYT best seller list), Michael Lewis tells the fascinating story of an unlikely hero, Brad Katsuyama from RBC. Upon realizing that "the stock market ...
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0answers
417 views

Where can I find a graph of bid & ask prices for a stock, and quantity of shares at each price level?

A website I use that follows the price of Bitcoin provides such a graph (below) so I was wondering if it were available for stocks. http://bitcoinity.org/markets (the second graph down on the page ...
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1answer
134 views

How important is volume when choosing an exchange?

I'm investing some money in ETFs; buy and hold. My local currency is CHF. I have an account in Interactive Brokers. So far I've operated on the London Stock Exchange, which means I have to do a forex ...
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1answer
4k views

What do the Sizes on Bid/Ask Quotes Mean?

I have a basic question regarding equities. For this example, assume that I have a quote for KO stock which says the following: Current Price = $39.00 | Bid = 38.99 x 6800 | Ask = 39.00 x 4300 What ...
2
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1answer
513 views

Bid/ask spreads for index funds

Let's assume for simplicity that each company in the S&P 500 has the same market capitalization, and has a share price of 1$. Further, assume the fund allocates 1% for operation costs. So when I ...
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3answers
1k views

Does a bid and ask price exist for indices like the S&P500?

When buying a stock (say Google or Apple) at day 1 you pay the ask price of that day. When selling the stock at day 6, you get the bid price of that day. The return you made is given by [ ...
2
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1answer
79 views

To minimize the spread costs in shopping in the North or Europe

I just noted that my Norwegian Nordea's Visa Debit card's spread is 2,56% when I pay my shoppings with it in Estonia: >>> a=7.33 // Google showed this course in its search by 1 EUR in ...
3
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2answers
438 views

The spread goes to the market maker, is the market maker the exchange?

I understand that the bid-ask spread is the difference between the price a buyer is willing to pay and the price a seller is willing to take for an asset. I also understand that this difference goes ...
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2answers
164 views

Can I convert spread option into regular call or put?

I have bought spread call on stock X. After that point, the stock went up and came back. My short position is the same price as it was when I bought it 1 month back. At this point If I just clear out ...
3
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1answer
3k views

Why is there such a large spread on bid/ask during extended trading?

I've noticed on a few stocks (NYSE:WHR, NYSE:PHM), that during extended hours trading, the bid/ask spread becomes extremely large. For example: Mar14th WHR closed at ask $78.10, and bid $78.30, and ...
3
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1answer
141 views

International Bank Account Only For USD For Student

I am not sure whether I use the right terminology in the heading, since I call the bank account which has only USD "international bank account" because it is not in euros. I need only USD for online ...
5
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1answer
441 views

How do I minimize exchange rate spread costs when shopping online?

I get my income in euros. I need to pay for stuff in USD because I use shops like Dealextreme where the base currency is USD. I have a Visa Debit card (so not a real Visa) since I am a student but ...
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3answers
14k views

How does a dealer (or market maker) earn the bid-ask spread on a stock?

If I am correct, dealers purchase assets for their own accounts, and later sell them for a profit from their inventory. But the spreads is the difference between buy (or "bid") prices and sell (or "...
6
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2answers
2k views

Italy BTP vs. German Bund spread. Care to explain?

I hear a lot of chatting about BTP/Bund spread recently. I am not familiar with this concept. Could you explain what it is and what it means, in layman's terms?
5
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3answers
185 views

Broker fees: Who gets the spread?

If one uses an online brokerage, or like my bank which offers me 100 free trades per year and I thus have no broker, who gets the spread?
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1answer
1k views

Stock spread: wide vs. narrow?

At First Time Investor - Stock market spreads, the author states: For smaller companies the spread can be as wide as 15-20pc. That means the shares would have to go up as much 20pc before ...