Wow, I learned something today. Thanks.
Fascinating, the 30-day atm prices I was looking at happened to fall on an ex-dividend date. So, that's why the puts and calls were not at parity....
I'm usually rolling buy-writes and short puts or spreads on the SPY and QQQ. At times I get stuck with partial fills that meet my limit orders....
Interesting, shorter term ATM SPY calls and puts trade at parity. OTM prices show the put skew and 30 day ATM pricing shows a put skew.
CBOE took a look at why their cash reserved put index indicated that put writing achieved greater returns than their buy-write index. They found...
-- Or, you could buy a put, buy the stock and sell an OTM call. But, the numbers won't add up for a retail trader. And, the time premium for puts...
Yes, somehow I missed that.
Me.
SPY and QQQ for sure. If you want high volatility IWM and USO. If you want lower volatility GLD and TLT.
I personally don't like the idea of selling short-term calls against LEAPS. But, I've honestly never tried to buy a warrant and then sell a LEAP....
Why do you want to use LEAPS and Warrants? Why not just do conventional diagonals, if that's what you're trying to do?
As a newbie trader my biggest mistake was overleveraging credit spreads.
It makes you wonder how it would work if it were a spread. You're assigned on the short contract and can't get the underlying, and probably can't...
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