The point is not to buy strangles, or call/put spreads, or calendar spreads. The point is to find an edge. You have to have a reason to believe...
Rudolf - read the attached article on gamma scalping then come back with any questions. This should clarify it for you.
Exactly correct. As for the computer code you posted - sorry, I can't read it. But the forward price is a simple calculation - you just...
Remember that movie "Gremlins?" I used to trade with a guy who compared options to Gremlins - with a lot of time remaining they're these cute,...
I think he meant "putting on the wings" instead of "putting in the wings." In any case, the idea is to be long wings as a sort of "safety net" in...
Buying IN the wings implies you were short them. I think Cottle's idea is to be long the wings.
Is this what you meant to say?
I was the one who suggested "leverage," or "correlation." But that still begs the question - if your strategy is purely directional, why bother...
Keep in mind that your options model first calculates a forward price for the underlying, then calculates the option price off that. I don't...
Again, this is just squiggles on a page. If you seriously want to establish a track record, I suggest you see a securities lawyer and have him...
Maybe you could just use the term "leverage," as in "My fund is leveraged 2 to 1 against the S&P500 - if the S&P is up 1% my fund is up 2%." Or...
Right. Think of it this way - delta describes the relation of your option position to the underlying. Beta describes the relation of the...
How do you determine market sentiment?
An anomaly is anything that differs from the norm. In index options - the SPY for example - the IV of each strike is always lower than that of...
Agreed. And I'm not talking about dispersion trading, which everyone agrees is not for retail traders. But if you're successful trading options...
If you can find a volatility skew anomaly where the bid/ask spread is reasonably tight then yes, that can work.
A trade that worked well when I was in T-bond options was to sell premium Thursday before a significant Friday-morning economic number. Premium...
Rudolf - what you want to find is anomalies in IV relationships. If you are familiar with the normal IV relationships between strikes or between...
No kidding! Wow - and you made money off a snafu like that - amazing. How often does THAT happen? Still that's a little scary, and a...
Long back month premium, short front month premium.
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