You would only "Roll" or "Adjust" any trade because the position you end up with is the position that you actually want on at current prices with...
100% agree, but it's the way retail punters, particularly the TastyTrade variety think, that they will keep rolling losing positions until they...
FTSE has had at least 2 daily rises of 8-9% whilst I have been trading, 2008 & 2020
IMO, trading US Markets can be an "illusion of choice" FTSE Options make trading relatively simple (but not easy) - Large nominal value £80k -...
In reallity, just a form of broken/raised wing condor In your example Core Position is 195-197-198-200 Put Condor + embedded 193-195 / 193-197...
Whether you are paying/receiving premium is irrelevant to whether you are buying/selling the spread In this case the OP claims to be - selling...
You can essentially ignore any trader who says "selling an out of the money debit spread" :banghead:
https://www.hoadley.net/options/options.htm
You can save yourself a lot of pain (and inaccurate RiskGraphs) by using something like Peter Hoadley's Excel Add-In ... quite superb and great...
LOL ... no, I was banned from ET for a couple of years for calling her out as a Fraud ... as Sosnoff/TastyTrade who were shilling her as a retail...
Feel free to block me, can put you in the same Turd Bucket with Sosnoff of TastyTrade who got me banned from ET for years after I called out his...
Looks like #ShitForBrains @Quanto has thrown the towel in and DELETED all posts from all threads, just when it was getting fun !
I've had enough fun for the day, See You Next Tuesday !
Cost is irrelevant with synthetic positions when calculating MaxRisk ! Try applying your theory to other equivalent positions where one trades...
Feel free to enlighten the world on your new OptionMaths :-}}
Both of your examples; $9-$11 Strikes RegularStrangle = Debit $0.62 premium GutsStrangle = Debit $2.62 premium PremiumDifference =...
Feel free to show your workings for #1 including IntRate say 5% #2 Risk/Reward
I guess neither Options or Maths your strong suit !
2 basic issues: #1 you assume IntRate = 0; Diff between Regular/Guts Strangle < Strike Width (Box) when IntRate >0 #2 Risk/Reward identical;...
#BullshitForBrains compares Regular/GUTS Stangle and claims Regular wins 4x more than GUTS Can't work out whether ... Parody or Troll ?
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