You're helping me formulate my thoughts more clearly. Thanks. Before I answer your question, I should point out that I tend to think defensively...
Sorry, it's been a long day -- is that what you meant to say about short vega & bear spreads?
Thank you. This is the type of discussion I was hoping to spark. I have gotten myself wrapped around the axle on "long vega" trying to imagine...
I am more than aware of your stance on the matter. You don't need to keep repeating yourself. Anyone else?
Thanks, but your answers are wholly unrelated to my questions. Assume that I have a directional bias on the underlying (or perhaps no...
I am trying to learn as much as I can about the setup and dynamics of diagonal spreads, either expressed as single directional trades or...
Unfortunately, I don't know the model being used by oX to calculate fair value. I might try to recreate your calc and compare. Thanks.
Looking at a bear call spread with 1 week to expiry, where both options are just OTM. Difference in the strikes is $2.50, and the midpoint of the...
PKW rises in January as much as it falls. Garbage analysis.
So consider those instruments which benefit directly from a spike in oil but aren't directly invested in futures. Like, XOM. Or FCX (half...
Jesus, did you change your name AGAIN?
Are you actually disputing the idea that the value of your spread AT EXPIRY is what the typical P/L diagram shows? What do you mean, "Real life:...
Pick an exit strategy and it will destroy your winning percentage. Now you're faced with the decision of whether or not you want to continue...
Well, the bid ask can certainly represent a drag on performance. I don't know that I would say ONLY trade spreads, but hitting close to the...
I fiddled around with the ratio of $SKEW to $VIX, and it looks like it is somewhat predictive. Using an adaptive moving average (default Kaufman...
The bid/ask doesn't enter into it. All that matters is the strike price + the price you paid.
You're looking for a recipe, and nobody is gonna give you that. I'm pretty sure we've all seen enough trades blow out the bottom 2STDV Bollinger...
I think you need to be careful with statements like this. At the risk of sounding Clinton-esque, you need to define "right". I might be trading...
Huh? There may be plenty of risk, but to say there is no reward is lunacy. What debit spread reaches maximum profit with the underlying at the...
Have you studied or traded the same strategy you are hinting at with ATM/OTM options?
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