Prefer strangles over straddles to get wider vega exposure on the smile...so condors more often.
I'll butterfly short straddles, and condor short strangles....to minimize risk.
It kind of depends on what you have on and what you're trading. If I've been buying OTM calls and selling OTM puts in a trading session, like what...
A lot of prop firms prefer the Sortino ratio over Sharpe. Positive performance volatility is a good thing. It's the nightmarish negative P&L...
Not sure how they exactly work but try quoting it as a Flex. http://www.cboe.com/products/flex Xandman is right that they'll be laughing at the...
Then you'll just have to avoid DITM's in less liquid high priced equities....unless you're willing to bankroll expensive stock purchases. I'm...
If he can't sell the illiquid put outright, buying 100 shares of XYZ is the right move. He could then just quote the ITM put and 100 shares...
Against $1.25 XYZ stock price the ITM $3.00 put is worth $1.75 (intrinsic value) + [extrinsic premium]. The same strike OTM $3.00 call is worth...
Buying the shares locks in the intrinsic value of the put...selling the same strike call locks in the extrinsic value of the put. Or if there's...
By buying the shares you now have a "free call". Sell the $3.00 call for whatever you can get for it to maximize the trade. Make the $175...
Worst case scenario, you should at least be able to sell intrinsic value ($3.00 - $1.25 = $1.75) for those puts, which are now deep ITM. Don't...
Best of the bunch. Comprehensive and an easy read, covering all vol-related theory and strategies. Free download too:...
Long 100 straddles would have made $450k+ at today's high.
You would have made a fortune being LONG the 7.50 straddle for 5.75. Good thing no one here sold it.
Would have had to double down on the short straddle just to get back to even.
Despite being overbought, there's signficant upside for gold & silver. People are going to be buying on dips, and like tech stocks from 1996-2000,...
1. "...has to move the right way" Huh? o_O 2. And your definition of fast is.... "Accelerate fast enough with terminal exit velocity" would have...
Much easier to predict direction of implied volatility than direction of the underlying.
Better price depth with more MMs during "off" (night) hours, but definitely LESS volatility with no more ugly price gaps between the close and...
"Only losers don't add their losers..."
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