Registered: Apr 2011
09-24-12 02:04 AM
Quote from sle:
Of course I am contradicting you. Probability of OP getting some un-X calls is about 1:10, like everyone else. If you are a long a 100k, chances are 8-10k are not gonna get X-ed, if you do it every expiration. There is no real difference if you sell a large block or bleed them out 1 lot at a time. You just have to be short enough contracts. The main limitation in this trade is the balance sheet cost, which is why most people involved in these trades are bank prop desks.
PS. Explain to me the whole attitude thing here - aren't we here to learn from each other? If I am contradicting someone or arguing, it's because it kinda helps to know what's true and what is not, what works and what does not.
Execution costs (commission and bid/offer) are an issue too.