If the stock falls by $1, the volatiliy decreases by 1%, 1 day passes and the value is 2.30 now, then the intial value was around 2.76. 2.30...
You should really educate yourself quite a bit more before jumping into trading. A market order means buy/sell at any price. A limit order...
As volatility decreases so does theta.
Only indexes have European options (European-style that is).
If the short put is exercised early then you would need to meet the margin requirement on holding the long stock, assuming you would actually want...
Based on the information you have provided I'd say the best strategy is to just go long the underlying. In other words, you haven't provided...
I don't have a fixed rule about holding ICs to expiry or not. Each expiration represents a unique situation. However, generally, I prefer to close...
The fact that you post such a question here means that you should NOT do it!
One of the most important, if not the most important, difference! I had the "pleasure" of experiencing the credit risk first hand, when AIG got...
No, SPY is not cash-settled, it has physical-settlement. You don't know for sure that you would be able to get out at "decent" prices, but if...
And bigger size means you save on commissions.
As others have pointed out already, the quoted markets are wide, but you can get much better prices. Also, when you compare SPX to SPY you need to...
Changes in implied vol only affect market to market value prior to expiration. At expiration there is no time value left in an option, so implied...
The have the underlying exposure.
I believe the commercials are the funds that hedge the exposure in the underlying shares.
The first question you should answer is why are you holding that call!? Are you expecting AAPL to move up strongly? If you are then you may want...
Personally, I don't think you can make such a general statement as sometimes the situation warrants the use of short term options. You just have...
Generally any of the broad-based indices are ok for iron condors. So you can also look at NDX, RUT and others (and their respective ETFs if you...
If you are buying a straddle then you can only place it at net debit, as you are paying. If you were selling a straddle then you would enter a...
December is a pure binomial play - either the stock moves by more than what is priced into options and you make money, or the options expire...
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