... and I wonder why people have such difficulty with this when simple arithmetic proves it? I've often seen guys who have been options...
It's interesting psychological study this CC vs NP argument. The equivalence is proven over and over and over again on the Internets, yet...
How does it do that? Presuming you allow the relevant option to be assigned, you end up with the same position. No shares if a close above...
You then increase theta again to comparable levels, because you have more contracts You also increase contest risk (bid ask spread + commish)...
Doldrums?
This seems to be a rather silly argument played out over and over again on this board. Why not buy, sell and/or spread as one thinks...
There is probably a book's worth in answering those. Pro for me is that they are NOT a direct replacement.
No, still no difference. You just have some open profit to add to the equation. Think of it this way. You could sell your stock and short the...
No worries Taowave, I was just interested if you (and others) might have a "picture" of them, even if only subconciously. Cheers
Just asking the question out of interest matey, not looking for an argument. But to answer your questions. 1/ I find it helps in my trading....
Could it be this person had a rich mental map of how the Greeks affected his position, hence had no need for the numerical values? I rarely...
Funny, And agree. But hard as I try, I haven't figured out a way to put on an IC/DD etc with less than 4 legs. :p Add in an adjustment or...
The question is: What are you trying to do? I've seen people stick belligerently to both 1 month and LEAP time frames... and everything in...
Understood, But I find the provision of additional legs useful for modelling adjustments.
pengw, Can optionslab do more than 4 legs?
Use a model and use the futures price as the input instead of cash. Hoadley or similar.
Almost any standard charting package will do HV, or be capable of it anyway. www.quote.com standard charts also plot HV if you want it to.
Of course. Every option trade is a volatility bet to some extent. Hang on! Most probably don't and wonder how the market makers ripped them off...
Your two paragraphs appear to be at odds with each other if I am reading them correctly. The only possible difference is (as you mention)...
Think about it. If they were not the same there would be a juicy arbitrage opp. at dividend time. It won't happen. To repeat, they are the same.
Separate names with a comma.