Yeah, biotech or medical or something that. Traded just the options of the underlying stock.
Long ago, around 2015. It was another biotech like the said SRPT, don't remember which one it was, it just was in a very similar situation...
I had a well-tested strategy based on pure mathematics/stochastic. But the market showed me that the "normally impossible" can still happen :-)
I was the option writer then, with just 10k initial investment and reinvesting daily the profits made, made a total profit of 28k in only 4 weeks....
With such events I think there are 5 phases: Phase 1: normal phase, date of event is announced/known, IV remains say 30% Phase 2: starts about 4...
@Atikon, do you mean the volatility smile one normally sees now flattens, or even turns around, when the event approaches?
Thx, makes sense. I just wonder which mathematical probability distribution one should use to model such an IV curve:...
This is just a hypothetical case: Suppose for a biotech company the current ATM implied volatility (IV) for both Call and Put options is about...
Is Trump demanding a ransom for TikTok, or is it a funny kind of sales tax? :-)...
Oh, good to know. Thx.
I just try to learn from such a past experience hoping to find another such candidate like AMD. That strategy would have made in about 4 years...
A follow-up question: What happens if your trade counterpart (ie. the option writer) goes bankrupt in the mean time? :-)
I should have done this trade about 4 years ago by investing $10k when AMD was about $2.90. Just imagine how much I would have made if I had held...
Why? Isn't it still a fair game for both sides regardless of strike and maturity? And: actually I was interested in longer time frames than the...
Man, of course I know the usual option pricing method like Black-Scholes. For a listed equity with options the strike usually does not go over 2x...
But how? Explain pls.
Let's say stock price is at $3 and I want to buy some Call options with strike say 3x the current stock price and maturity as long as possible...
Since US President Trump has ordered TSMC not to do business with Huawei/HiSilicon anymore, this leading Chinese company is cut-off from using...
TD Ameritrade has recently charged me a whoppy $38 for a stock-split ! I was holding the stock in my portfolio for a long time now, it's just an...
Yes, using IB's TWS C++ Unix API on Linux some years ago, but I hadn't finished it as it's a big project and I was alone on the project and some...
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