Spin - if I understand correctly, you're inputting into your pricing model an interest rate of 1.5%, while the ACTUAL percent you're paid on your...
I wrote a program in an ancient language called Quickbasic years ago, and still use it to this day. I also use Hoadley's options analyzer and...
IVolatility has (or used to have) a for-pay service called their "Advanced Ranker" that claimed to do this correctly. But when I actually tried...
Walt, I think you're still laboring under a few misconceptions. First, your statement that "the benefits of gamma and delta do cost (i.e....
Walt, in your message you kept comparing a "long straddle" with a "synthetic straddle." You didn't say anything about comparing an option with...
Where on earth do people come up with such misconceptions? There is a reason that a position consisting of a long put and a long underlying is...
Spin, you seem stuck with this idea that carry cost makes calls more expensive than puts. It doesn't. It just changes the underlying price from...
E-signal and DTN IQfeed are two widely-used data vendors. Real-time data will cost more for some contracts, such as ES. If you have an...
You probably just wanna see what's under the option's skirts you pervert! Actually you're right, it's a very rich area for instructional...
I'd say it's a way of stripping an option position down to its essentials so you can see what it really is and how it behaves. It's like looking...
I'm happy to discuss flying by greeks or anything else. I'm not sure it merits its own thread but if there's anything you want to know, ask away....
Forget "greeks as a whole." You're looking for the "unified greek field theory" and it hasn't been invented yet. Vega describes an option's...
I certainly agree with the KISS principle and the potential cost of having positions with many legs. But the reason I can manage a position...
I'm saying that to make money you have to risk money. The risk is deadly real, all the time. Every moment you are in a position to make money...
Agreed. Option spreads offer defined risk, but then so do outright long options. The reason I would trade a spread rather than an outright is...
Yup, that's really all you need to know. Even during the greatest bull market in history, the greatest investor in history couldn't average more...
To get the actual answer, there's no substitute for for a modeling program. But as a learning exercise, I think it's a great idea to struggle...
I think your misunderstanding is in comparing delta with vega directly. It's true that your delta (55) is a smaller number than your vega, but...
Whatever course or books or learning materials you buy, really understanding options is a matter of "breaking your brains" over options problems...
You're short delta so if the underlying falls 5 points you will make money, not lose it. Also keep in mind that you are short gammas, so the...
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