Most diagonal spreads go the other way - with the long leg long-term and the short leg short-term. In the traditional diagonal, you would have a...
Do you contend that common shares are not fairly priced? I would say they're even more fairly priced, particularly the ones that trade billions of...
Retail investors absolutely have an edge in derivatives. Look at an option chain. There are maybe half a dozen strikes in both puts and calls. The...
If you're into common shares, I would check the CBOE's list of penny-traded optons, they should have much narrower spreads than the nickel-traded...
Wow, condescending. How many people do you think are using common shares for their real purpose, which is having a management stake in a...
Time value, I said. As in time premium. Not "time". Having time left is the very definition of being assigned early .
If OI goes down by one contract, that could be your contract getting assigned. Early assignment is about time premium, not open interest....
Short puts are long delta (make money when stock goes up), short stock is short delta. Each is a hedge against the other. Personally, I find...
I don't really see this as a delta issue. If the stock isn't doing what you expected, or it no longer looks like it will do what you expected, you...
A low volatility stock shouldn't have short-term options anywher near that expensive. The straddle would in reality be much cheaper to open and...
Premiums on calls will necessarily go down on a big down day, because they lose intrinsic value or get farther from the money. However, the IV...
That's one type of adjustment. It's equivalent to requiring the delivery of cash, but they'd most likely only reduce the strike if the special...
If the original poster is correct, a dividend that large would be considered a special dividend, and the option contracts would be adjusted...
If one is slightly less pedantic, an income strategy generates more consistent gains than a growth strategy. Most people who are looking for...
I think there is a difference. When people are looking for an income generating strategy they typically want month-to-month growth with minimal...
We passed zen. When? Just now.
Writing a strangle is a directional play. The proper "boast" for that position is "I don't know which way the underlying is going to move, but I...
You don't. It's the other guy's option, and he will exercise the option in the way that is most profitable to him (not to you). You sold him a...
It's generally the long leg of a credit spread. If it expires ITM, I'm in big trouble.
Personally, every time I buy an OTM option I hope it expires worthless.
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