I hear Antarctica is beautiful this time of year.
If you want any feedback, you may want to post some details of the position (you don't have to disclose the underlying). Just a thought.
Double calendar spread, aka straddle swap.
Delta netrality is NOT an edge! There is no point in discussing what is the edge of a position since we don't know all the details.
Setting a limit (stop) works fine until it doesn't. What are you gonna do when the underlying gaps up? If you are a newbie, I suggest you stay...
ForexForex, You are probably the only person around here who doesn't use an option analysis tool, everyone else could've entered the example I...
Here you go: [IMG]
Input an example I gave at the beginning of the thread into an option analysis software and you will see that a position like that does exist.
I agree with you. Maybe that position worked once and never again since 2009. :)
The OP said up until 2009, so it is plausible.
As I said, this position works well if there is a big move up or down, if the market stays at the short strikes then you end up with a loss.
The first thing that comes to mind is that person is probably one of the best clients for his/her broker. Paying commissions on 6 legs on the way...
You don't need 6 legs to be delta neutral. This could be something that was legged into over time, i.e. the position started out as a simple...
Yes, you can construct a position like that. I don't think there is a formal name for it. Basically, it involves a call backspread with an...
Not necessarily, you can input discreet dividends into a pricing model. Besides, you only need the dividends that are paid during the life of the...
On second thought, given that IBM and YHOO do have a positive correlation it is theoretically possible to at least partially hedge a YHOO long...
Good catch. I didn't pay attention to the tickers. :)
Fair enough.
1 D - selling a put is a bullish position, so with it you are not hedging a long stock position, but actually adding to it. 2 C - volatility is...
There is no single rule here that applies to all situations. It depends on the particular option in question. However, you are not the only one...
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