There's a bit of confusion here. Greeks indicate semi-quantitatively/qualitatively where risk exists for an option position. Position greeks of...
Take a look at this comment and the article cited: http://www.cxoadvisory.com/calendar-effects/weekend-effect-for-individual-stock-options/
Overcoming the vega risk is difficult with long-dated options at any strike other than deeply ITM, unless you're at a generational low in IV....
1) a .30 vertical is not enough reward for the risk you are assuming. You'll end profitably most of the time, but if you get a serious move...
The ability to unwind an inventory at various times prior to expiry makes the comment in the initial paragraph not as relevant to the retail...
Ditto here. Maybe a little variation in the interior, but excess long wingstrikes makes trading a catastrophe manageable if not profitable. Then...
? You're long (additional) stock and short the call at the put strike. Synthetically. If you're talking single units, you're long 200 shares of...
Take a look at teenie volumes on the 14th.
Lots of attention has been paid to optimal hedging frequency. It is an important topic and not one to be left to "intuition" unless you're...
You'll find tenor skew in widgets 360.
Sam's advice is spot on. Maybe even extend it to 2 or 3 years making 75k. You'll find the job is not so bad if your trading goes well. You're...
If you typically sell bounded premium, then there is no reason not to do so in this environment. By selling irons, no matter the vol environment,...
If you're trying to replicate, the essential element of option trading is to buy at a vol less than realized or sell at a vol greater than...
If you've got catastrophic loss covered, try an OTM put calendar for your intermediate move. You'll gain on delta and vega. If your overall...
Well said.
Although I agree with nitro that âdelta neutralâ conversations are often misleading, directional risk is a component of trading that even...
Try using a "band" around the BS delta instead of staying completely flat. Reduces friction substantially. Even retail traders can trade this...
I would add that flattening deltas by selling premium obligates you to own cheap wingstrikes before the underlying moves too far in one direction....
Separate names with a comma.