When I used to actively trade earnings, I did just that when the near week's IV expanded a lot than a later week, preferably the following week....
There are no free lunches with dividends (share price reduction). If you exercise the call in order to be eligible to receive the dividend, you...
Been there, done that but never as bad of a fat finger trade as this one. I vaguely recall that many years ago I set up a price warning with...
If the option has any time premium remaining, it tends to make more sense to sell the option rather than to exercise (salvages time premium and...
You don't sound too swift either
To repeat much of what Robert Morse said - Retail commissions cost an arm and a leg. - You had to call your broker by phone and you often waited...
An explanation like that BS is meaningless. The fund's performance will tell you if you're being shown his movements or not.
Are you referred to the option's bid being below parity, as in worth less (two words)?
Choice of expiration depends on if doing long or short Butterflies (rate of time decay). Do 3 legged Butterflies (all puts or all calls) to avoid...
One point equals $100. If the credit is 1.6 points, that's $160. If the risk is 18.4 points per contract, that's $1,840 per contract. Doing 50...
Delta changes primarily due to price change in the underlying. It can also change due to the passage of time as well as change in implied volatility.
As beerntrading stated, "There is so much to that question I'm not sure even where to begin." There are multiple ways to approach this so just...
When I read your posts I realize how little I know about options beyond my retail trading. Thanks for your ongoing contributions here.
If you want to see how delta changes over time, use a pricing model and advance it one day at a time, keeping all other variables constant. Time...
Can you explain how auto liquidation "created" a 10% loss in your account? What position did you have that was at break even, but when...
I too don't understand how auto liquidate could lead to you losing 10% of your equity in one day, especially with SPY. Perhaps realizing an...
You do not understand this process at all. Some made up numbers: If you sell an OTM call ($50) and the stock's price is well below that ($40),...
Maybe I'm missing something more complicated in the question but it seems to me that there are two simple possibilities. Average the B/A of...
LOLOL. Option trading levels are designed to protect the broker, not you. A covered call is Level 1 approval and a naked put is Level 4...
You sell a short call strike in a covered call where it provides you with what you believe to be an acceptable R/R trade off (potential profit...
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