My earlier post in this thread is obviously not quite right as far as benysl's example is concerned - it's what happens when you type before you...
Not quite (it's a bit more complex than your standard vertical credit spread because of the calendarisation and the many months between the front...
Hi Lar I thought contango only applied to commmodities futures options and not stocks/indices options. Could you please clarify your...
It depends. You can roll the put down and out when spot gets to your short strike - this should let you do the roll to the next month for a...
You are correct. Your trade should be profitable as long as your rolls are done for a credit or even. Your position is in essence a double...
? Your credit is now $0.3? This changes a few things. Your risk now is $7-$0.3=$6.70. Iow you're risking $6.70 to make at least $0.30. High...
Every time you roll your short put down you increase your risk and reduce your potential max profit - the amount of increased risk depends on the...
Not quite. Your max risk, as you said, is the difference between strikes (7 points) minus the credit you received (6), iow 1 point. You basically...
1.If a stock option is itm by $0.05 or more at expiry it will be automatically exercised/assigned ($0.01 or more for index options). 2. If a...
I'm not quite sure what you're asking but vega is higher for back month than front month options. Your straddle/strangle swap (aka double...
The 3 choices you outline are all things you can do (plus there are lots of other possible adjustments) and they all make money as long as the...
Thanks everybody for your contributions, particularly AAH :). I'm sorry that the thread ended on a somewhat bitter note - whatever happenend to...
Unfortunately that is human nature - where I live it's called the 'tall poppy syndrome'. db
Hi Marnie Thanks for your explanation. I'm actually on holidays at the moment (sunny Melbourne) and won't be injecting consciousness altering...
Thanks everyone for your contributions but I still don't have the answer to what makes up the component legs of the iron cockroach. db P.S. nice...
Papertrade (options or stocks, doesn't really matter which) first then use real money (small amounts) after becoming proficient & consistently...
Does it come with pictures and how to get into the different positions? db
That's very odd, I've got the exact opposite experience. I've been trading bullish collars following the 'random crawl strategy' and I've been...
Does anyone here know what an 'iron cockroach' is? db
Maybe it's considered unpatriotic for US citizens to trade options on non US markets :confused:. db
Separate names with a comma.