I'm probably not being specific enough. Do you own only one stock that you overwrite each month and that you want to protect? A portfolio of...
Standard deviation. Lots of folks here hedge day-in and day-out, so the technical answer to your query isn't so hard. Importantly, they'll...
Do you mean that you only want to hedge a large sigma move?
I understand, although you should consider a less complicated alternative to express your market opinion. If you can trade an iron fly given your...
Can you give us some insight about what you want to accomplish by adding the calendar equivalent?
Remind us why can't you buy the long vertical?
Your query of whether the marks will be "identical" during the trade has to be answered with a bit of qualification because issues like liquidity...
You may not be viewing your trade in this way, but many traders think that buying a same strike put and call calendar somehow places their...
If I'm reading your question correctly, you've got the equivalent of 2 call or put calendars. It's a fine position, if that's the position you want.
Hedging with the underlying locks you into negative replication error if stat vol is greater than vol you shorted. Be careful if dislocations in...
SPX is a non-equity option. Tax treatment of same is in IRS pub 550 on p 40. Just call your accountant.
Favorable tax treatment
Yikes.
Exactly. Your first scenario is the most common, of course, in which the view is market neutral. In this case the iron is the preferable trade,...
I wasn't addressing assignment, since assignment isn't a disadvantage, although that's a longer discussion. My point is that when trading ITM...
There is a difference, but it's not on the basis you discuss. It has to do with the positioning of the trade relative to the underlying. If...
I'm not suggesting being stupid. A limited risk position, at least by the end of the day, is the only sensible one to end with. Even more...
Reg T, position-based margining from your broker is but only one source of capital.
Leverage.
You're kidding of course. Your rant is probably just venting frustration, but don't dump the baby with the bathwater. Successful option...
Separate names with a comma.