He's giving you poor advice: ITM calls tend to have higher IV's, making them overpriced when compared with OTM calls. They also are more...
If you're looking to hit your 1% target within a month, then options don't make sense. If you're doing a day trade, then a 1% move can make a near...
Yes, you're missing the main point of using options in the first place: leverage. In some cases, depending on time to expiration and IV, an option...
Is there no hybrid of the 252 and 365 based calculators? Weekends and overnights should count, as evinced by opening gaps, but to a far lesser...
I don't know if you looked at the example in the link, but it is not distinguishing days when the market is closed from when it's open. Do you...
When analyzing potential spread trades I like to use Online Options Profit Calculator...
The only way it makes sense to buy them both is if they have the same IV, otherwise just buy the one with the lower IV, as IV differences in the...
I would think that an efficient market would entail compensation for option sellers being built into the premiums; without this motivation there...
SPX may not quote as tight, but in practice they fill near the middle and, more importantly, I've found they cost less than the expected 10x SPY...
To enter that trade with my broker it costs me .15 x 225 = 33.75 plus 5.00 commission = 38.75 plus exchange fees and tax. This is too expensive...
As mentioned by others, this is no different than selling naked straddles; the underlying positions are just superfluous expenses. Selling...
"How can this be profitable selling at the money straddles in addition to buying wings on those straddles and using stop loss pending orders of...
I take a different view of the idea of using strangles for a hedge: most people think of them as an insurance expense that eats into their profit...
My point would still be the same, even if you use a mental buy target. Yes, there are pros and cons, depending on what you're trying to do, which...
Predicting the future and discovering a fair price to assign to risk are two completely different endeavors.
I can understand that: you were willing to sell sell something underpriced because your belief in market direction overrode that consideration....
If you compare the behavior of the market on those days, then it's obvious why option prices went up; that would be evidence that there was no...
Now I'm confused; I was comparing "selling overpriced otm put spreads" with "buying underpriced simple otm calls". So even with their low iv you...
I already addressed this: The only way you can do worse than simply buying on the dip is when the stock gaps down from above to below the strike...
This is a strategy for people who like a stock but are not willing to pay up unless they can get it at some lower price target - sometimes it's...
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