The delta of the 6 month options will depend on whether they are itm, otm or atm. As a general rule, if itm then their delta will be higher...
No, as has already been mentioned in other replies. However noone seems to have mentioned pin risk nor the risk of the OEX SET price. db
??? 1. you are charged margin for the short vertical so this 'cash in my account' is an illusion. 2. why are you mentioning buying stock? We...
Why wouldn't you just buy the spread, e.g. buy the bear put vertical rather than sell the bear call vertical, assuming liquidity and assignment...
A brief comment about terminology in regards to the IC mentioned in this thread. When you open a position you SELL the IC (not buy, as Mark...
He sure is. Would have been a lot easier to get the student to bone up on option basics first (iow get him to do some homework rather than spoon...
Vega is not implied volatility. db
True. However, some traders buy the extra long calls to create a more delta neutral position when they initiate the trade since most atm...
Charles uses the slingshot hedge for a married put position. One buys the stock and buys enough puts to protect the stock (aka synthetic call). To...
You are selling the front month and buying the back month, same strikes. That's called a calendar or time spread. It is done for a debit, NOT a...
So, you want to learn to fish. That's good. TOS is an excellent broker and platform. Now, be very careful as to whose advice you take. You can't...
Sell RUT iron condor for credit of 1.50, 50 days from expiry, short strikes delta 8 or 9 with 10 points between long and shorts. Probability of...
Dear newcomer, A good general rule of thumb is: "you get what you pay for". Just remember that ET is populated mostly by people who mean well...
bullish otm cal is long delta, long vega. short otm call vertical is short delta and short vega. Both are long theta. Combine the two and you...
Some traders like to reduce vega and delta exposure of their IC's by adding a calendar at the strike of the long leg of the 'threatened' side -...
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