I may be wrong but I'm not sure that a 5 ES point move in either direction is going to move any index option by an appreciable amount especially...
DITM options although they may have a delta close to 1 still involve leverage....just look at the cost of any DITM option and then look at the...
"If the underlying drops, you will lose the time premium that you paid (the extrinsic) plus the amount that the stock drops drops (intrinsic)."...
I think you have missed the point... What is being discussed here is the use of DITM options as a PROXY for outright buying of stock. Let's...
Each deep in the money options contract (delta close to 1)behaves similarly to owning (or shorting) 100 shares of the underlying. Time value is...
I agree with Freehouse. I believe you treat them as separate transactions for tax purposes.
Anything for ratings. Could you imagine if Cramer were chairman of the Fed.....what a nightmare.
Bernake and the Fed are playing it as best they can. Way too much emphasis is put on this man and his ability to control the US (and the...
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