@blueplayer..I found your links quite informative. In your "on the long side" piece you stated that you did not think generally long puts were an...
Just curious....why go out so far, with such a wide strike for so little credit if you think the deal will happen as currently structured which...
@sle, can you explain this in more detail ? ie: do you mean the actual delta quote on a specific option or something else ? thanks
See post #6 for example, thanks
Ha, LOL. Let me see if I remember correctly Marsman. You are the know-it-all Euro who can not even fund a live account and has never done a...
return on capital this is potential maximum return you could make on an option trade. It's calculated by taking the maximum potential profit and...
Thanks for responding. But what I was refering to is determining if there is enough premium in an individual trade with respect to POP=1-ROC, and...
for optioncoach or others...I've always used the premium received/width of strike spread in calculating the ROC on a potential trade. I've...
I'm not the most experience, but I do trade credit spreads, which was probably the wrong vehicle in this bianary situation. CS work when things...
. I believe der k.'s point is that this forum has seen many posters with hypo's, theories , etc. but no real world trading experience to...
Sure pal, you have it all together. Here are 3 phrases you should get used to :...assignment, margin call, blow up. And no, holding to expiry...
It doesn't matter what is desired. Once the position goes ITM (and some will, probability notwithstanding) you either have to close out the...
If you are using delta to approximate probability of a position going ITM, then 50% is huge. 1 chance in 2 your position is in trouble. Also...
No, with your "probability" strategy you will be ITM more than you are prepared for. Horse is out the barn door as far as hedging at that point.
What is your strategy when it hits your short strike or goes ITM ? If you don't have a stop loss strategy you are going to get smoked. If vol has...
@marsman...be careful if you are just selling premium (even in spreads) based on probability and fabs without encorporating an opinion/call on the...
@marsman , ( sorry, didn't mean to sound so snarky in my previous) also I think I get where you are going with your "formula" but, is there a...
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