The amount is too small in relation to the possible price swing of the underlying. Say, UL moves up $6 by expiration. 1st degree call would...
Who would be selling an option for 0.002 and why?
Sure. Got a link?
That's good to know. Thanks!
Is there any ready to use site or software package that allows to create these graphs?
Jeff Augen uses price movements expressed in standard deviations. That allows to see how frequently a given stock spikes one way or another and...
For this trade? No. It is initiated on Wed of the OpEx week using the next month options. The wings are 4-5 wide and the mid point is next strike...
Opened Nov 141/146/151 SPY IB for 3.22 credit. Total risk is 5-3.22=1.78 per spread. Let's see how it flies :-)
Ironflies and callfiles have different spreads and that is especially true at the expiration. However, I don't hold IB till expiration anyhow. I...
There are differences between iron and put/call 'flies. The only time they are the same (theoretically) is at the expiration. ATM IB has smaller...
To me "buying" means a debit transaction while "selling" a credit one. Hence, call or put 'flys are "bought" and iron 'fly is "sold" to open a...
I am selling Iron 'Fly (+1P/-1P/-1C/+1C), not buying it. Selling IB is <u>selling</U> volatility as IB is short vega. However, that is not the...
Yes. Sold to open for 2.66 and bought back for 2.46. It became even cheaper several days later.
I opened 143/147/151 IB on 09/19 for 2.66 credit and closed it on 9/21 for 2.46. Gain was ~11% after commissions. Have you tried a similar trade?
What is "hybrid IC"?
Double calendar is a combination of 2 calendars. E.g: +SPY 150 Nov Call - SPY 150 Oct Call +SPY 140 Nov Put - SPY 140 Oct Put...
I did not mean 1% of the strike price. I meant 1% of the total combo price. Compare that to stocks. A $20 stock usually trades with 1-5c spread. A...
What do you mean by "a lot"? I routinely see 10% or more spreads on some combos that I am interested in. For example, Sep 360/380 AZO strangle...
Can we somehow force MMs to reduce bid/ask spread? Petition SEC perhaps to make spreads no more than 1% of the contract value and do sub-pennies...
Not really. The trade is opened when there are 30+ days are left till option expiration and closed within 10 following days. By that time there...
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