How is this trade "very risky"? At front month expiry, aren't you just risking the net debit to place the trade?
A short call, sure.
I don't even know what you're trying to say, but you seem convicted. Carry on . . .
You're the one who fudged the pennies in the first place. Apparently they were pretty important to you, no?
Sorry for the bump, but I've been studying double diagonals, etc. and came across this thread. A key part of the discussion has centered around...
Now THAT deserves a :D
I don't doubt that a contrary move would be painful -- there are no free lunches.
Well, one could buy a DOTM put to hedge, but now we're right back at a credit spread and its issues. (I don't know if a credit spread structured...
Correct. I don't like the negative gamma. Wouldn't vega be in my favor? Theta too, but many of my trades are over within an hour or two, so I...
Would a short put work better than a long call as far as swing trading goes? I have my concerns with the risk profile, but if my intent is to get...
You're basically talking about normalized B/A spread, right?
Thanks, I'll check out McMillan. Does he go into the tradeoffs between DITM/ITM/ATM/OTM ???
In general, I feel more comfortable calling price direction than volatility. Over the past year or so, I have been relatively successful trading...
Did you stick with it? Nice little move to the upside, and now it's off the 200 SMA. My favorite strength indicator says it has pretty much...
Every ATM put (50% delta) "protects" 50 shares. If you want to protect half your position (i.e., protect 500 shares), buy 10 ATM puts. You...
EXC is parked right on the 200-day moving average, which could be a good test. You're either at a bottom . . . or you aren't. Momentum seems to...
How many times are you going to post this question?
The peanut gallery has a peanut gallery?
That's a good way to put it. I tend to trade long calls and long puts mostly because I try to pick reversals. I am not good at forecasting price...
Excuse me? Oh, I'm sorry. That was impolite. I meant "fuck you". Nowhere did I claim $1-$2 was deep OTM, so you can start with some...
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