Options have the benefit of theta decay if you're short. Some time I'll turn my directional trade into a strangle if the stock goes against me.and...
Another way to ask this is, what's the cost to replicate a double barrier option and a rebate option.
. Yes but theta kicks in. The whipsawed thing wasn't meant to be illustrated as a problem. Certainly there is a minimum Delta which is outside...
That question is entirely dependent upon the market, the amount of analysts tracking it, the bid ask spread, etc.
Yes, I agree to an extent. How do the costs compare when you've flipped the trade 5 times though. Buying options might be more expensive in the...
Let's say I'm trading a breakout strategy. If I only trade the underlying, I pay commissions everytime I get whipsawed. If I buy a straddle,...
The Volatility Surface by Gatheral is a good read.
I'll start by saying that options trading is not my specialty unlike the case for some of the other posters (SLE seems to be very knowledgable)....
That's like being a fatty and walking out on the beach in a Speedo. Just because you can, doesn't mean you should. Now if we were talking about...
If only that's how it worked...
Support and resistance as defined in a trading book? No. Overall my win rate isn't that high for these starts but profit/loss are so much higher....
Lol! brings back memories. I got lucky once holding pharma overnight and never again will I put on that risk.
Here's some unsolicited advice that applies to any question you might have: Get rid of that God awful picture.
Read Haug, "Option Pricing Formulas" and build your own with his VBA. Also, lots of packages in R.
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