If memory serves me, Wilder compares today's High and Low to yesterday's close and also calculates today's H-L difference. He then takes an EMA...
It might help to know that the synthetic of a collar is a vertical spread. So if you leg in and can net a credit equal to the difference in...
With the NP, you have up to 2 fewer commissions (2 if it expires, 1 if you have to close it). Plus, you don't have to fight 2 B/A spreads going...
LOL. I think that Richard was suggesting that from a risk/reward potential, the Apr 10/2.5 vertical spread was a better bet than the covered call.
You can find historical option quotes at : http://stockmarket.businessweek.com/stocks/quote.html Unfortunately, they changed data...
One would trade wherever the best price was. Hopefully, your broker or platform has Smart Routing and would send your order there to obtain the...
The last news that I read said that the company expected to present the results no sooner than late in the first quarter and was hoping to present...
It will cost you approx. $8 to buy that strangle. If AGIX's implied volatility (IV) drops (before exp) to its historic avg of .50 upon release...
You want the far month to be inflated above historical as well, otherwise there isn't a lot of profit potential. A key component is your...
You need a big move for this to work. The IV crush is usually not enough. And it's a strategy for close to expiration. Look for IV Trader's...
>> This is exactly what i did for ISRG (115/90) except the ratio was 1:1. Looking ahead though it seems like a good approach to ratio one side...
If you're a long term investor, there's nothing wrong with pocketing the gain on the call write... other than the stock keeps going down. But...
With skew issues, I often redundantly (g) ratio the OTM calendar on both sides. Usually 3:2 but sometimes 2:1. I avoid the 3 letter puppies...
DO is kicking off a $4.00 special dividend tomorrow morning. The puts are priced to reflect that. While they may appear to be juiced, they're not.
If all parameters were entered correctly, there's no way that the position will have a $7 difference in break even from yesterday to today due to...
It's a very good idea for a newbie to explore hedged positions when starting with options. It tends to reduce a learning curve tuition that can...
The short answer is that in a reverse calendar, you are expecting that after the news, the time premium in the short (far) month is going to drop...
>> If I buy 10 contracts of a GOOG option with a delta of 50 it is not going to be the same risk as if I buy 10 contracts of SUNW with a delta of...
Compared to the posters here, I know very little about the Greeks. What I can tell you is that your option's price (and its delta) is affected by...
There are no free lunches. If it looks too good to be true, it is!
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