Margin requirement for option positions and margin borrowing are two different beasts.
Stating common knowledge does not change the fact that buying exorbitantly inflating IV is swimming upstream. As a general rule, it's a really...
All I have to offer you at this point is an eye roll for believing that IV is irrelevant for a long straddle when IV is going to crash from 100...
Props to you for being convicted enough to be willing to lose 75% of your large long premium in minutes to hours.
spindr0 said: "I'd take a look at selling OTM bearish call spreads to fund a portion of the cost of a long protective put. No cost if you lower...
It's clear from reading your replies that you have a good handle on the possibilities so I'm not going to take a deep dive into analyzing the what...
I can only surmise that because Cuban could only utilize an index where Yahoo was less than 5 pct of the index that there were other SEC...
During the lockup period, Cuban crafted a synthetic index hedge (where Yahoo was less than 5 pct of the index). When the lockup ended, he put...
Anything is possible. But is it practical? I think not. If you believe otherwise, we agree to disagree. The short answer is that in this...
First off, the PTLA example was in response to the claim that buying a straddle before a 180 to 55 IV contraction might be sensible. I have no...
A covered call is synthetically equivalent to a short put. Selling puts may reduce frictional costs if the underlying cooperates (you pay fewer...
That sounds good on paper but in practical terms, it's a fool's errand to buy an expensive straddle that's going to lose 75% of its value...
Percent drop would vary across strikes and expiries but percent is meaningless. It's a Pyrrhic Victory to make 95% of 20 cents and lose 50% of a...
Regardless of the vols, the further out premium will be greater. If a binary event occurs with a large move in either direction, the respective...
If you have a crazy IV of 75 or 100 just before a clinical trials release, would you be willing to pay that kind of price for a strangle or a...
Where were you all of these decades when I was trading backwards??? I'm a new man! Tomorrow will be the first day of doing it right. :D
No, the extrinsic value of a LEAP is NOT the sum of expected extrinsic value of a monthly rolling position at the same strike. And no, there is...
The straddle is more profitable ($44.39 versus $33.87) ROI is better for the strangle.
For a big move, a strangle might blow the straddle out of the water in terms of ROI but not in terms of $$ profit... unless there was a distorted...
Here's an atypical use for a calendar. Suppose there's a looming binary event (clinical trials?). Large move expected. Direction unknown. IV is...
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