I'm just saying all you did was put on a 4-leg synthetic bull spread with ~ 2:1 reward to risk (fill in the appropriate numbers). It's not...
I'm sorry, I couldn't help myself. What an absurd notion, this revolutionary "inverted credit spread". Your new position is a bull spread that...
I see a few errors. For starters, you claim you booked a credit of $1.56 on the initial position, but in your "what if" scenarios, you then...
Yeah, no.
It's not just the bid. As an example, the ask on the Dec18 SPX 100 call is $1,850.80 (SPX = 2058.69), which implies the call is priced at ~ 95%...
You pointed out a negative expectation on this trade: -$31 I assume some of your spreads show positive expectation when you initiate them. How...
Great response, thank you very much. Outside of the 0:15 expiry difference, is there any other reason that DITM SPX LEAP calls "trade" at a...
Thanks, good point on margin.
Going purely on the market's perception of your call (delta ~ 0.05), I would suggest that there is roughly a 95% chance it will expire worthless....
OK, much obliged.
Disregarding why one might want to put on a synthetic long instead of just buying the underlying, does such a position tend to behave like the...
Nice post. Would you say that your profit largely lies in your ability to find spreads that the market has not priced appropriately?
Before you retire from the thread, can you offer any insight into whether or not you are able to trade for profit using your high risk, low reward...
OptionsGuru continues to confuse Risk:Reward with expectation. The odds of TSLA hitting his target were something like 1% based on pre-earnings...
You don't seem to have a problem using the price of the ATM strangle to identify the market's expected range of movement over a given time frame....
OK, your typical BS. Gotcha.
Have you calculated Risk:Reward for your trade? If so, how did you do it? To put it another way, what is the expectation of your trade, say if...
I figured as much. Thanks for taking the time to check it out, now I don't have to.
Can you elaborate? I'm not interested in playing a bunch of videos. An example would suffice, along with a definition of "inverted credit spread".
I didn't say I endorsed the strategy, but that's what some people do. If you sell additional credit spreads, you just increased your risk....
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