I know what you mean, but CL is probably not the best example. At the moment, the CL skew is quite even up and down - a true smile of volatility....
I didn't really think I'd come out ahead on this - I was mostly just curious to find out what would go wrong. If it hadn't looked so good, I...
Last week I did the Oct. 85 reversal for -87.75, a theoretical lock of 2.75. I just did a one-lot, as the point was mostly to see if I could hold...
Jeb, you'll get no argument from me about anything you said. There was a time when I traded silver and gold options on the comex floor, and your...
That would seem to make sense, but history shows otherwise. It has never happened that the market made a sharp move up and implied volatility...
This is a wonderful example of a logical non-sequitur. Imagine a game where two dice are thrown. At each throw, if any number from 1 through...
Isn't it silly to argue blindly about the appropriateness of buying or selling premium in a vacuum - without factoring in the cost of that...
My pleasure - glad to hear it's helpful.
No difference, you can't lose more than you paid for a long futures option either. I would be puzzled too. Call your firm and ask them what's...
You wrote "unkilled trader" instead of "unskilled trader." I like it your way better. If I were counseling an "unkilled trader" who wanted to...
BTW - going back to the discussion of the NVDA 45 calls - that is why the VIX calculation includes every SPX option "with a bid greater than...
The price of an ITM put is composed of its intrinsic value (strike minus price of the underlying) plus time value. For the purposes of...
Forget about the puts for a moment, and look at those calls. From the 22.5 calls all the way up to the 45's, they all are 0 bid at .05....
The question would have been better phrased if they simply said "price" rather than "theoretical price." Every product of an option model is...
I would say A. DELTA is the rate of change of the THEORETICAL PRICE with respect to a change in the underlying, and GAMMA is the rate of change...
David - would IB just charge me for borrowing the stock with no warning? Hardly seems kosher. IB - are you listening? Any comments?
Well call me a hopeless romantic, but I had to try it. I just did the Oct reversal for a "lock" of 2.75. Doesn't make a bit of sense to me, but...
I haven't seen anyone mention Oct. '87. Does anyone imagine they could safely manage such a position through an event like that? Will it...
Right, try it small and see how it goes. I'm not saying your approach can't work, just that you need to be aware of all the different ways...
If you expected to buy the option and either hit your target or get stopped out all on the same day, then your scenario above might make sense....
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