volatility is synthetic time and time is synthetic volatility. db
Using delta to get neutral and thus ends up with the synthetic straddle. 10 long puts have delta (in this example) of minus 450 whereas the 1000...
Extrinsic value is often referred to as 'time value' - realise it's a bit of a misnomer. Extrinsic value is mostly determined by time and implied...
Hi AAH I couldn't agree more. It's always easy to criticise those who are trying to make an effort at improving themselves. Yes, many seminars...
Could you please clarify what you mean by 'itm outright'? Are you referring to the vertical? If so then how much itm? Thanks. db
Nice summary! db
Probably best to read some books first and then ask for clarification if necessary. This topic is huge, as has been pointed out several times. db
Like you I've worked my way through a tonne of books. Only one author I have come across has any books that actually detail the strategy (each...
Geewhizz that was quick. I thought you said (only 4 posts ago) you wouldn't post here again and we all breathed a sigh of relief. And now you're...
What about the other spreads - calendars, flies ...? Also your answers are a little incomplete and your generalisations a little too general. A...
[/B] It's nothing personal. It's just that people here don't generally come to this options forum to be sold some product. This forum is...
damn , you good [/B] He's very good. That's why he's selling the book. Sure can teach us a thing or two about options since most of us don't...
Well Marnie, it doesn't seem to matter which board one goes to, the same rubbish gets circulated, I remember the same nonsense being discussed on...
An open position obviously doesn't 'increase in time' but an increase in volatility has a similar effect on the position as if there were more...
Dec 08 has more time than dec 07. (And then there is synthetic time as atticus already mentioned). If you look at an option chain you'll see that...
If you believe in the above statement then you should stick to your guns. However, at what point will you exit/adjust/lock in profit if your...
Thanks for the info Tom. I also did the 'optionetics' thing which btw I thought is quite good for learning the basics and mechanics of options but...
This question may seem a little naive, but why would anyone want to close out a long option that is worth 0.02 or less? Pin risk is the only...
The simplest thing to do is to plot your position on a risk graph and see the value of your spread change as you plug in different price...
Separate names with a comma.