Take SPY as the obvious example. Mar 18 2022 400 call = $59.70, SPY price = $452.30. $52.30 of intrinsic value, $7.40 of extrinsic value. The...
Look at fewer DTE. 80-90 delta. Roll when it gets to 90 DTE and you'll keep most of the extrinsic value. What underlying are you trading? I...
You could just buy a long dated, deep ITM call option. Unlimited upside with limited downside. Cost of insurance is the extrinsic value of the...
Do you need to actually own the stock?
All while the current CEO spends his free time DJ'ing. :rolleyes:
Interesting. Are you mainly trading simple spreads or something more complicated? Are you trading short term bets mostly?
I went to the grocery store last night and ill be damned if the toilet paper/paper towel aisle was about empty. That and my beloved Snyder's hard...
I have one of his books. He searches for stocks with earnings acceleration. Too bad none of todays highfliers have actual earnings.
f*ck it, I'm going to K-mart to buy one of those $100 compact cars. :D
haha, I shouldn't have said "nary". I have actually dicked around with a couple non-PMCC trades (wow!) and closed them without a clear...
To those who do this profitably (and hell, even to those who don't!)... Is your "typical" trade a simple strategy (2-option spreads,...
Here's a set of P&L curves for the above mentioned diagonal call spread, along the lines you were thinking. In this case, I vary the strip...
That is true. I could certainly do a Monte Carlo type analysis that I doubt the typical broker software would do
It's a bit more work to make these "typical" P&L graphs, but I agree with you that I should do it. That is probably the most intuitive way to...
I think you commented on this in a previous post, but this options game is notable for the magnitude of disconnect between "book knowledge" and...
My bad. The long leg is indeed Dec 17 expiration. I was actually simulating a diagonal call spread. I'm not explicitly using VIX in the...
I'm slowly grinding my way toward intuition and possibly action... I'm trying to stress-test a position. In this example, it is a bull call...
Is this sort of your alternative to holding a bunch of cash? Or are you keeping the cash stash in a different account?
Let me ask anyone who knows what the hell they're doing a simple question: Are you primarily trading volatility or underlying price? Or...
I've not heard of the "C = Spot x Vol x Sqrt(Time) x 0.40" rule-of-thumb equation, but it sure is convenient. I assume this is only for ATM...
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