All 3 positions have exactly the same risk/reward ratio. The reason being that there are synthetic equivalents of each other. That is, buying...
The risk is exactly the same in all 3 combinations (call vertical, put vertical or stock collar). Also, whether you pay or receive premium (as...
Or you can just buy a 75 call and sell a 77 call, and achieve exactly the same thing. On a side note, you can also sell a 77 put and buy a 75...
To calculate your return you simply link the return between withdrawal dates. That is, you calculate your return each time there is a cash flow to...
That depends on the put's delta. ES has a delta of 50 (i.e. each point is worth $50, while each point in SPX is worth 100), so 2 ES means a delta...
There is no best approach, and noone is gonna just spill the beans here, if you know what I mean.
It's not free money. By selling a call option you limit your upside. If the stocks explodes to 100 then you would forgo the $5,000 profit on the...
As mentioned above by others, the main difference is that warrants are issued by the underlying stock's company or in some cases by a bank....
First of all, SPX and RUT options are settled based on the final settlement value, which is calculated using the opening print of all component...
I don't know when you looked at those prices, but based on your post's time stamp it looks like it was afterhours. I suggest you only look at them...
Dividends are priced into options so there is no "arb" to exploit. Also, if you are assigned on your short call then you would be assigned on...
Unless it is you who got screwed. If you are assigned on a short call due to a dividend then there is no gift for you.
If you buy the underlying and sell the calls then the calls are not naked. You can just buy the calls to hedge the delta, but you would still...
I have already answered this question. If you are long 20 Feb 122 puts then to hedge them you would buy 2000 shares of SPY and at the same time...
Your post is confusing. The first sentence asks about a call, but then in the example you mention a long put. A perfect hedge is to close out...
Unfortunately, you don't have the same risk simply because if SPY is at 60 at expiration then the shares are still worth 60, while the leaps would...
Sure, why not, but you have to realize that you are gonna lose most of the time. I think it is best to place these into earnings so that it ends...
Stocks are settled on a T+3 basis, but it is irrelevant to the discussion. You cannot just cancel the transaction after it has taken place, but...
OK, before you get any more comments similar to mine...If you want informative answers then you need to ask specific questions! Your question...
Yes.
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