Let's see if I have this right. Cashmoney69 starts this thread about a synthetic call. It's apparent that he's a relatively new to the...
I don't know a thing about skew distribution and option pricing so I have no clue what its relevance is. But what I do know is that if you look...
Given a post EA IV of 45, I think that your profit range is too optimistic. It's narrower. Plus, you go negative fairly quickly if RIMM drops....
AFAIK, that's the advantage to the synthetic. Then it's off to the races with adjustment possibilities.
You're a very dab boy!
Well, that would be one of the possible choices in that circumstance.
Good question (a light bulb moment?) But what if you have gains in the stock (or long call), you're still bullish and you want to stay in the...
When you do these calcs, you have to use the respective B/A's of the components and the quotes must be real time. Last trade and closing quotes...
LOL. Yep. But I think that the all time winner is "Why are there two option symbols for the same strike?"
Let's try a simplistic example, ignoring carry costs, B/A spread, dividends, etc. Suppose RIMM is 100 and the 100p and the 100c are $1 apiece....
If RIMM drops and you cover your long put for its profit, you are then unprotected on your RIMM and will have a larger paper loss than the gain...
Right or wrong, at least you had the courage to post your position. Just curious... Why did you do put protected stock instead of just buying the...
neke, Tho I might have stumbled across it anyway, thanks for posting the HAR info. It was a great short this AM in the pre market and I feel...
There are no free lunches :D
LOL. That quote does not say the last available HAR price from September 21,2007 "DURING REGULAR HOURS." The last known quote from September...
You lost me on this one. If HAR is $85 Friday PM, the calls are OTM and worthless. Why bother?
Brokers can require higher margin requirements than Reg T... and I don't know what other brokers, if any, offer this. Is this even allowed?...
http://www.fairmark.com/capgain/wash/wsoption.htm Losses on Options Congress amended the wash sale rule in 1988 so that it applies directly...
Long Call â more than 9 months until expiration Initial margin requirement: 75% of the total cost of the call(s) after position is...
Even stupid people can make money in the stock market :) Day-schmay claims 6-10% per month. Let's be conservative. At 6% per month, your...
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