The way I saw it was that an initial position is near-linear... And gamma would be low. Delta would increase over time due to decay... So...
ahh true, I should have left the word "leverage" out and left it at delta. But everything else is correct afaik...
if you don't mind me asking, which broker do you use?
Unless you're projecting a violent move (increase in vol), I recommend itm calls/puts, as they have a higher delta (more leverage) and lower break...
what about a vertical spread that matches the delta of the underlying position?
yes, the writer bought back or the purchaser sold the option they bought prior to expiration or exercise/assignment.
if you sold the options, or "Sold to open" you can buy them back, or "buy to close" if you bought an option, or "buy to open" you can...
trades are too risky for me, but i'm still a noob. I guess they don't mind being long below the puts' strike
Im so sorry to hear that happened... Takes some courage to share that with us. Good luck.
thanks! that's clear
but isn't that just market fluctuations? or have I misunderstood your post?
thanks... i think a lot more posts will make some more sense now :D
what is "slippage" i keep reading it...
awesome, thanks for the info, really appreciate it!
Ok, these are dec puts. So if I had this as a real trade ID be able to close right? I'm guessing yes but just in case. Thanks for your help.
i was visiting new york 2 weeks ago and had pizza on wall st! it was pretty good...
Hey, I've got a paper-trade 40/50/60 put butterfly, that I can't trade out of! I know why (due to special cash dividend on shares)...
thanks! another to add to the ever growling list lol
which book is that?
funny, I've done that and haven't traded since :p But seriously, after trading direction, I started to look at trading vol. I dump less...
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