got it. so it does have to do with volatility. why is it always volatility! :) Robert, the reason i'm purchasing the puts and calls with 80...
I'm buying the 80 delta put and 80 delta call because i'd like to capture a significant move in the underlying stock... ideally, whichever way the...
Thanks Robert. I may titled the thread incorrectly... instead of buying options with a delta of 50, i'm experimenting with deltas of 80. I don't...
Hi all, I purchased 3 calls, each with a delta of 80, expiring in 2 months. I purchased the same with 3 puts... each with a delta of -80,...
well, thanks to everyone here for your input! as always, every bit helps. back to the trading screen :):)
If not by dollar amount, what determines the value of the option? From what i've observed, it seems that call premiums are way too much cheaper...
Tom, Aside from collars, pretty much every other trades i've looked at, whether they are credits spreads, debit spreads, condors, etc... the...
The part that i do understand is that QE lowers interest rates which affects the call and put premiums... however i didn't know that prices were...
Got it Maverick... I see what you're saying.
ok, i got that. would a trade exist where , using your example, you buy the put for 1 dollar, and sell the call for around 70 or 80 cents? I...
ha! yup, there's always courses out there for a couple of thousand! haven't taken them, but i'm pretty sure you'll end up in square one after...
Correct... the trades i am looking at are not the same strike. the put would be ATM or close to it, and the call would be OTM. but the prices...
Hi Martinghoul, I think what Tom_czr is implying is that QE is affecting interest rates which in turn is keeping the call option premiums low...
very interesting! i didn't think QE had this much effect on options prices. it does make sense though. I guess we have to wait a while for...
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