If all options are priced so that the average expected outcome is exactly the premium you pay/receive than that also goes for any combination of...
You might want to read through the whole thread once again; the answer is there. To summarize: the current price of an option contract is the...
That's you own decision of course, but know that the adds are a form of income for ET and as such replace a true subscription system, which I...
options212, I just received a SPAM PM from you. I never had one before so I guess it is forbidden. I asked the Moderator to ban you for this. FYI,...
Please call some of those in to repair the Euronext/Liffe exchange then, since it is has serious quality problems all the time. Since the french...
Possibly, I saw discussions about that but never really got involved because of different laws where I live. Isn't the fact you are delayed by tax...
That is right, but to me that poses the enormous question: why would you 'already' own stock for the long term if it doesn't do anything, or so...
Nice try though, and execellent hedging too. Rise in all Indexes is quite unexpected, I think it's all about reaching psych bariers, 5000 for...
I think it is even more basic than that. Many ppl do not view their owned stock as 'at risk'. They eg. think that they will only lose on the...
The wings were 2.50 cheaper than when you started the straddle, so that seems like a good deal. I'm not sure about the latter sentence; what...
Agreed. So you didn't consider hedging/rolling? That would'v been my dilemma. Now you have the iron, would you consider closing the body any...
Did you complete because your target was (almost) reached or any other specific reason (about GOOG)? What would be the value of a new iron fly...
Yes, I agree with that. The gamma advantage you posess in the DOTM's should play its part in the strategy. Wouldn't know how to quantify that....
The point is you said that DOTM's had hardly any time-decay. But if your strategy tells you to buy 1000 shares, you would buy about 20 ATM options...
You mean the change in gamma? It's not part of my set of my set of continuously calculated numbers, so no, I wouldn't be able to give you a value...
Yes, the change in gamma is very favourable of course. I forgot to say, but I think SleepingGiant's idea of emulating a Turtle type system with...
All options have a theta, and to have the same delta as in an ATM deal, you'll have to buy a lot more DOTM options then ATM's. The theta/delta...
Thanks Mike, this makes a lot of sense to me and I'll probably use the weekend to digest it. The concept of a strategy depends of course on it...
You might be right in the comparison there, since I don't believe in those either. Everytime you 'leverage a winner' you have an opinion about...
Lots of people do it, I think, and that's what this thread is about. What we started to agree upon is, Yes, in the long run you will be right...
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