Here's a discussion on the topic you may find useful: http://www.wilmott.com/messageview.cfm?catid=4&threadid=3656
This is an excellent demonstration why all those ads and emails from those claiming they have a great trading system with which they've taught 91...
I posted a brief youtube video on what can happen if you don't pay attention to greeks when trading options:...
Actually you add the call delta and the put delta, keeping in mind that the put delta is negative.
So many want to believe that there is some simple formula that will give them an edge and can be repeated mindlessly. Good luck with that.
Sure. ITM calls can be expensive (high IV) or cheap (low IV). To give an extreme example to illustrate, if you sold ITM calls at 500% IV,...
Because he has no clue how to get an edge so instead sells misinformation to gullible people.
You can't find an explanation of what a put and a call are? Or is there something else you can't figure out?
If ABC stock is at 120 and IV doubles, then the 120 (ATM) calls and puts will approximately double too. The OTM options will more than...
If IV on the SPX goes down, then the VIX will go down, so you might expect that a put on the VIX would be worth more. But in reality, the IV...
Free Thinker is right in saying vol crush, and a week of time erosion didn't help you any either. Of course it's the IV of the option itself...
Well, you know what the model's assumptions are. So if you can point to one or more of those assumptions and have a firm conviction they're...
If we're talking about, say, gold futures and options on futures - buy a gold call and sell a gold put of the same strike and you are long the...
Ha ha - well put.
That's why he makes his living as an options "guru" as opposed to an options "trader."
Free Thinker, rather than argue theoreticals, let's look at facts. Are you truly unaware that zillions of people have gone bust selling puts?...
Even if that statistic is true, it is meaningless. Had you sold hurricane insurance policies in New Orleans for the years leading up to...
You could start with this short video I made on trading VIX futures and options. It's free and I have nothing to sell....
Let's say XYZ is at 100. The 90 puts are otm, the 90 calls are itm. If interest rates are zero, they both have the same theta. That is...
It's for their employees only.
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