I think that your going to have problems with this DD. There wasn't enough skew b/t Nov and Dec to make this attractive. Add slippage to that...
I'd like to revisit this question since I too am interested in this strategy. I understand the concept of gamma scalping and I think, its...
I agree with everything that guys said, particularly the statement that "This isn't going to hurt at all" :>) Now this is stretching the OP's...
The short answer is that you are placing a trade that has a high probability of providing a low reward (37 or 47 cents, depending on which typo...
Poster's numbers are fishy. A $4.50 stk with approx 3 weeks until expiration and the $5 call goes for 75 cts? Now some amount of time passes and...
From a cost standpoint, IB is even cheaper because assignment and exercise are free and there's no ticket charge either. So you can trade big or...
Here's my two cents, in a simplified answer... Put the bulk of the money in A rated preferred stocks (S&P and Moody's) which yield approximately...
I don't think that current month expiration has much if any of an effect on next month's series. IMO, daily price movement and IV changes will...
With these high IV situations, sometimes butterflies can be had for peanuts (I did not check LDK quotes) - almost no risk. IV contraction can put...
You can't buy diagonal spreads on margin. Long options have no loan value so you cannot borrow against them. They must be paid for in full....
Vertical spread is equivalent to a collar. Calls are more expensive than puts due to carry cost. Fine if stock moves up. Not fine if down....
StockHustler, The best time to buy options is when they're cheap or when they're more expensive after you buy them. Options are...
CHA is a volatile stock and its options move around accordingly. Yes, the Oct 85 call was a big winner today but not to the extent that you think....
AMEN!
The blue line is the HV. Look at the brown line which is the IV Index Mean. Note the big drop in IV every 3 months (and the 4-6 week rise before...
Karnak says: Relative price of AAPL options will decline on 10/23 Karnak says: Click on the link in my last reply to see why
BTW, to see the effect of price on ROI, try a simple comparison of two options at expiration. AAPL closed at $166.80 yesterday. Compare...
That's not necessarily true. ITM with higher delta has a better chance of making a profit but OTM gives you leverage and with a good up move, OTM...
IV rose while price dropped. For ITM calls, the loss of intrinsic overwhelmed the increase in premium due to IV expansion so the option's price...
I've never had enough faith to let them auto exercise anything that I was long that was ITM at expiration. I can just imagine that conversation...
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