Neither is an indication of what fill you would have gotten in an actual trade. You would never trade options with a market-on-open order (unless...
The "box" I took out was simply a 32.5-35 bull vertical spread (short 35P, long 32P) and a 32.5-35 bear vertical spread (short 32.5C, long 35C)....
I know you separated it out so it looks like a fly and two ratios, but let's massage it a little. Your ratios include a box, so they're...
Probably, since the more stupidity you have the faster your capital goes.
How does that limit your risk? Bear in mind that we're also toying with using Martingale, which is essentially "keep failing more and more...
Yes, but you're exposed in both directions, which means that the market is twice as likely to go somewhere that will lose you money.
More to the point, the credit card company is not in the business of providing free dispute resolution services. If they charged an amount they...
The problem is, statistically a stock will not move twice as far in two months as it does in one month, because a lot of the random fluctuations...
When you're picking up pennies in front of a steamroller, the steamroller only has to win once.
Yes. A diagonal is both horizontal (time) and vertical (price).
When you buy a car, is the cost of a parking space part of your contract with the dealer? Owning anything other than cash costs you money,...
Your maximum loss occurs when your short leg is assigned and your long leg is exercised. That means the worst you can possibly do is exercise...
Only short positions can get assigned. Long positions are yours to exercise as you see fit. Theoretically, any short option can be assigned at...
Serious money gets made by making your company look bad so people buy it? You can't be serious.
Sell them?
Yeah, but casinos know in advance what proportion of big losses they will sustain, and for how much money. Games like blackjack and roulette have...
You have to control risk no matter how you trade options. The tricky part about buying calls isn't the risk, it's the reward. Specifically, you...
Long calls are probably the hardest way to make money trading options. You have to be an excellent stock picker, which is far from simple - even...
Yes, you basically have to be a reasonably good stock picker, and trade options in such a way that they profit if your prediction is correct....
If the company is bought for $6 cash, your options will be worth a bit less than $1, with no time premium. If the company is bought for stock,...
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