Look at it this way: you're long the synthetic 55-60 put spread, for which you paid 3 bucks. Had you sold the stock at 60, you would have paid...
I emailed IB and asked their policy about this. Here's what they had to say - not very reassuring. "You can hold a short position so long as!...
I would mostly agree with that. But with certain options such as those on SPY, there is such a marked and consistent pattern of IV dropping when...
Do you get a warning? Or do you just wake up one morning, log on, and get a message "Sorry, your short position in XYZ has been closed out. Have...
I seem to recall reading that if you're short stock, you can be forced to buy it back earlier than you wanted to. I'm not talking about being...
Lessons learned moving from options on futures to options on stock: A few days ago I noticed that you could do a reversal - a risk-free...
Have you looked at the skew on MYGN? OTM calls are trading at way higher IVs than ATMs and OTM puts. Very unusual and very interesting....
Any time you think you can buy a call spread or a put spread for zero, forget about fake money and put in a real order. It won't get filled, but...
I would mortgage my house and buy all of these free diagonal call spreads I could. Then I would sell my firstborn and continue doing more. When...
This sounds like a lovely, lovely, Memorial Day dream. It may appear as though you can buy this diagonal spread for zero, but if you try you...
What data are you looking for? IV on stock options or futures options? Detailed IV strike-by-strike or a general number for comparison's sake?...
In the options on futures world this is called a risk reversal. A true reversal would be with the put and call at the same strike. Since they're...
Mysticman - I come from the futures side, so I'll defer to you on the example using stock and options on stock. In the futures world, there...
If all your options are in the same month, and there's lots of time remaining, it's easy to stay gamma and delta neutral. With lots of time...
One thought would be to keep an eye on the puts. When and if they become NOT inflated, that's the time to buy. That's the best time to buy...
When you are long premium, every time you adjust your deltas you are locking in a profit. When you are short premium (as you are), every time you...
I came across a website, www.ivolatility.com They provide options data and an options scanning capability. Has anyone here used them? Any...
As far as VIX options are concerned, the answer to the simple question "where is the underlying trading?" is about as clear as mud. I've read...
With your options calculator, calculate the delta of an otm put with a low IV, then try calculating the delta with higher and higher IV's. You'll...
Options on indexes and most individual stocks are such that the lowest strike has the highest IV, and every higher strike trades at a...
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