Pain, yes, but ONLY if they just bought calls/call spreads and did not attempt to go delta-neutral. Sell overpriced (acc to vol) puts/buy...
I would add that another advantage is selling atm is better liquidity. The "disadvantage" in selling atm is the increased likelihood in being...
At IB I have had troubles with stop orders on Globex (ES options). Otherwise, I am satisfied with IB.
Because if volatility is increasing, then BUYING premium will be more profitable. Premium increases when vol increases. I want to make it easy...
Riskarb is right. Thanks. I really need to get more sleep--I misspoke AGAIN (twice this afternoon). I had said "Buy a otm longer term...
I wasn't thinking clearly when I wrote that. Calendars have an advantage over credit spreads in times of rising volatility, and rising...
Yes, both do have limited risk, but in a market with rising volatility, one would be less likely to lose the entire amount risked with a calendar...
No, it would be a debit spread, not a credit spread. BUT you would be long vega, not a bad thing when vega is rising. This would be a good...
Happened to me frequently, esp with ES options on Globex. Stop orders are a real problem with IB. Needless to say, I do not use stop orders...
If one bought the calls when IV was low and then closed the position when IV was high after having kept the position as delta neutral as possible,...
During periods of rising vol, calendars are superior to bear call/bull put credit spreads. Calendars are positive theta AND positive vega. If...
This is a reverse calendar (or time) spread. This strategy works best if you feel volatility, or vega, is going down. If volatility continues...
Imagine what Japanese automakers could do if they had the chance to improve GM and F? Probably never will happen, but it is fun to think make...
Sometimes those infomercials are the best entertainment on TV.
When I last looked at the balance sheet a few months ago, I came to a similar conclusion about the short-term. Long term is where the risk is in...
If one is going to buy puts, I would buy some from a more distant month, like the Decembers. Lower time decay, plus greater vega.
Amen, brother GA. I used to trade the SPX options myself, and used to think that the ES options had too wide a spread. Several months ago I...
I'd think that a small cap stock would be more likely to go parabolic than a large or mid-cap stock would. I cannot support this with any...
By selling options with more time, he is taking greater VEGA risk, in addition to the obvious gamma risk. Those of us who sell shorter-term...
One can go to Wealth Lab (the old, still free, pre-Fidelity version) and test many of his systems. Most did well in the volatile years of...
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