No I don't. If you were not so busy trying to be a smart ass, you would understand that I am talking about spreads that keep being more profitable...
Good for you. Your life must be very sad for you to spend your time attacking and insulting people on a message board.
I think you know exactly what I mean, no need to be a smart ass. The goal of a butterfly is to achieve a price target at expiration, or be as...
??? A butterfly is not a directional spread.
Mushin, I take care of the "FDA, earnings, bad news" with money management/ position sizing. It is part of my directional strategy, the most...
asap, my strategy with the spreads would be to do it with Leaps, as you are right, I don't know when the move would happen. Anyone here doing this...
MTE, what I meant was rolling the short call to a higher strike as the price of the underlying approaches the strike, to keep taking advantage of...
Great post asap, thank you for the comments. I guess, as I am a trend follower, the elimination of Vega risk is not important for me as I like to...
I never understood why people would even consider simple 2 legs vertical spreads. What are you trying to achieve? Reduce your cost? Just buy less,...
You know what I mean: they estimate future IV's and P/L depending on the move of "entire IV" that you anticipate.
Rallymode, TOS can model each strike independantly. Just click on the wrench and then on "more". Anyway, for those of you interested, I just...
In other words, given a fixed drop in IV, options with higher vega will drop more than options with lower vega, HOLDING EVERYTHING ELSE CONSTANT...
TOS gives you future (or "theoretical", are you playing with words, I am sure you know what I mean) IV's. How do you think they are "calculating"...
MTE, you already said that, and I understand that different months have different IVs. In fact, read my thread about "BIDU earnings" and you will...
To answer some of your replies: I know that IV calculation does not include Vega. BUT how do simulators like TOS calculate future IVs? You enter...
Vega is the amount by which the option price changes when the implied volatility changes. I think we should all agree to this. So if there is a...
I am still holding here, at a loss as well. Stock unchanged is worse case scenario. I have not had time to review IV crush yet.
Yes, I am short the June's because of high Vega. Anyway I wrote down all IV's so I can compare tomorrow. Did the same for HPQ.
I am not mixing volatility with Vega. I understand what Vega is. - Vega is higher for back months than for front months. - It means that...
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