Option x3. I must be very stupid. Can you explain the reason for the strangle to be more profitable than a straddle. I will tell you the reason...
LOL dude you sound like a young guy who has lost all his savings trying to trade the market....nothing wrong with that. Pack up your bag and move...
The difference between the July vol and September vol should not have been 12 points different because DOCU has earnings in septembet
That would be a directional trade if there was no time value associated with it. With options you have to guess the move within a time frame....
??? They are a pure volatility play. The proper way to trade a strangle/strangle. Is to make a prediction on volatility and delta hedge until the...
stock xyz = $100 straddle price $5 Stock goes up to 200. Call = $100, Put = $0. You made 100-5 = $95. Very simple There is more to this tho. You...
@Secret Santa Glad to here he's doing well, however I prefer the other story. If we look at NVDA here. Front month IV is at 2 year lows. If we...
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2871616 Here is an article that says buying front month straddles on stocks that have the...
I am reading collin bennet. How long does it usually take for the market to correct for root time?I have also looked into SLE's collection (that...
closed docu for 2.9. Nice lil trade
Im also trying to find what the "normal" slope of the curve should be between expiries. For example if front month vol increases by 10% then the...
How much leverage are you using?
What is meant by selling term structure?[ATTACH]
hmm.. but what if the back month is pricing a $10 move and the front month is pricing a $8 move? I don't think you can look at a calendar spread...
As I attempt to learn how to trade the term structure, a lot of my research topics are on calendar spreads. I have found a few good articles on...
If you read this before the close. DOCU JUL/SEP calendar is 2.00. Just got filled. Next earnings not priced in! The July vol will get crushed but...
Also a very important question: if I think the vol is underpriced. Do I sell the event expiration and buy the back expiration?
So does it make more sense to trade otm calendars? More volga in the just OTM as well. However I would have to put a calendar on each side. Could...
woops i put 2 t2 in the function. It should be "vol_jpm = (v1, v2, t1, t2)"
I hope you didnt go to bed yet Kev. You can just paste in R studio and hit run. Let me know what you think.
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