That makes sense. Thanks MMTS. Cheers
The conclusion I have to draw from this revelation is that there is no advantage trading collars over trading the equivalent bull call spread. I...
Don't worry, I noticed :) Cheers daddy's boy
Thanks guys - you're tops! This thing was driving me nuts! I must say ET is fantastic, thanks to guys like yourselves. Best daddy's boy
Fellow traders, I have come across a dilemma and am hoping for some fine advice. Here is the dilemma. Everyone agrees that a collar has the...
It's an example of attention seeking behaviour, usually restricted to small children and teenagers. daddy's boy
Umm, I hope you all realise that a lot of my posts are kind of tongue in cheek, the bits about crying and hugging, that sort of stuff. Right? I...
You are very welcome. It's good to see that you now understand options. Unfortunately I'm still struggling a bit with the finer nuances, but I...
I'm almost embarrassed to admit it, but I first came across options at an Anthony Robbins "wealth mastery" seminar many moons ago. Initially put...
Thanks MTE. Is it easy to calculate the cost of carry, if so, how is it done? daddy's boy
??? Surely you can leg out of a debit spread also if the underlying moves against you. There really is no difference from the risk reward point...
Well, it was greeks day a while back and now it 's time for a change :) Thanks for your replies. Best daddy's boy
I think I just worked it out whilst having my shower. To get max risk I subtract the long put strike from the synthetic long stock strike and add...
MoMoney This may sound idiotic but how do you work out the max risk on the synthetic bull vertical? I can see how you arrive at the max profit by...
If underlying expires at 219 or less, you get to keep your $1 premium - it's your maximum profit, as you said yourself earlier in your own post...
Hi MTE Sounds a bit complex to calculate. Why not just work out the short call's extrinsic value and if it's equal to or less than the dividend,...
You've constructed a synthetic stock position which doesn't make sense. If your long call is 1.10 and your short put is 2.60 then you have a net...
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In summary, the risk of assignment is high when there is very little, or no, extrinsic value in your short leg. daddy's boy
Hi Chris If you buy a regular condor, as in your second example, you want the price of the underlying (u) to be inside your short strikes at...
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