- Or, you could buy a put, buy the stock and sell an OTM call. But, the numbers won't add up for a retail trader. And, the time premium for puts...
It has been my understanding that: - If there is a pending dividend and the time premium of an ITM put is less than the dividend then there's an...
A long synthetic stock position and a bullish vertical have very different R/R spectrums. The bang for the buck depends on the size and direction...
At one point on Friday, the B/A spread was $1.20. I'm not motivated to trade at such prices, particularly when the aggregate position is fairly...
I think not. Using your formula and using the midpoint of the call, the put would be worth be worth $7.57 (midpoint). And yet the put's quote is...
I own some ratio put protected stock (more long puts than stock). I want to keep the stock and roll my puts down 5 points, lowering my cost...
Ummm, not really. Per the CBOE: For purchases of puts or calls with more than 9 months until expiration, deposit / maintain 75% of the total cost...
What exactly do you think margin is? It's the SMA in your account from cash or marginable securities. I suggest that you Google "Margin...
A covered call is synthetically equal to selling a short put. If you sell a cash secured short put after establishing a covered call then you...
Ignoring commissions: A long vertical must be paid for. That is the risk. The potential profit is the difference in strikes less the premium...
The margin requirement for a short vertical spread is the difference in strikes less the premium received.
Assuming that: - These are equivalent spreads - The P&L of each spread is similar - There are no dividend compications Then the call spread...
I have an IWM annuity situation that I'd like to hedge. My cost basis is $149 and the IWM's current price is $166. If IWM is above $149 on...
Separate names with a comma.