Math doesn't usually make these things clearer. If anything, math confuses the issue for people who are non-mathy enough that they didn't do the...
They are options on the actual index. If you want to trade the index, either find an ETF that tracks it, trade the futures or synthesize a...
Heh. Everyone is sure they want to own the stock at a lower price, as long as the stock is at a higher price. What idiot wouldn't want to own a...
That "wrong" is wrong. It double-counts the effect of the split. He's counting a factor of 2 because delta changes, and another factor of 2 for...
Unpossible. 1) Gamma is the (calculus kind of) derivative of delta. That means if delta is multiplied by a number, gamma is multiplied by the...
Gamma is the first derivative of delta, so if delta gets cut in half gamma gets cut in half too. Also, the delta of "the position" (your option...
I'm no expert on currency markets, but don't you only eliminate the directional profit and loss if your "collar" has both options at the same...
They don't call it "Motrin IB" for nothing ;)
Every broker will be different, but most should lend you something on other holdings - just not as much as they would on cash. The closer it is to...
In short, you found a nice gentleman who is generously giving away free money. Great, that should last as long as he stays solvent. Any other...
The VIX is a measure of implied volatility, which is an instantaneous concept. The "expected volatility" in the future is a hand-waving definition...
Interest rates are low now. You won't find a completely safe way to make a big return. You especially won't find a way to "juice up returns"...
That's a useful number to be sure, but another useful number is what size of move you're actually betting on with your position. Even with no...
The stock moved in favour of the straddle by 1 point. The straddle was worth 3 intrinsic before, 4 intrinsic after.
Straddles are symmetric about the strike. Thus, if nothing else had changed, the 75 straddle would be worth the same whether the stock was at 72...
That's probably only worthwhile if you want protection at the same strike price for several months. Great if the market is trending down, but bad...
Rhetorically asking "what are the chances" is kind of not a justification for exposing yourself to a black swan, since a black swan is by...
You can go one strike in either direction, maybe two, if that fits with your outlook for the stock. A 60 strike on an almost-$90 stock is just a...
I don't know what kind of a price change you're expecting in a few minutes or hours, but I can't imagine it would be enough to make a straddle...
Your quote showed the options trading below intrinsic? That's some seriously faulty data. Are you using Yahoo for your option quotes or something?...
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