I am sorry but I was trying to help you. Your story has been incomplete and shifting. Now I understand that you were long a 48 put (which should...
Suppose the market did what you wanted to do (go up). Since you shorted an OTM put, this means your strike is below 48. I assume strikes are the...
I may have misunderstood what you wanted to say. I understand that the stock was around a price (which I was not clear what it was) and then you...
Here is how they make money. They hold a position composed of many legs. Each leg or set of legs can be replaced with one or multiple legs (stock...
In any hedge, you should make sure you are not naked. Some responses given above lead to naked positions. Do not do it. Positive theta means...
I did not read all responses, but I read some. RE calendar spreads, a call calendar is the same as the put calendar. Check it out by running some...
I agree with previous post. Gives us: strike, price, vols, time, and carry. Here is how to compute the carry. Go to ATM strike. Compute the...
There is no problem with time spreads! You seem not to have understood them. That is all. First, the best environment for time spreads is a nice...
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