There is no way to know this. It is called pin risk.
Yes, legging will be required. Let us say I enter the bull call spread first...and if the stock rallies, enter the bear put spread leg. So in this...
In theory, I should be able to open up a long box by selecting two strikes where the debit required is less than the difference between the...
When you sell a naked put, you don't mind being put the stock at the strike. So, if you don't mind being long the stock at 50, why are you in a...
I guess what he means is that 2 puts will also give you double gamma,double vega (same as 1 call, 1 put. ). So in that sense, the straddle is no...
Got it, thanks. Can you provide a guideline for choosing a proper delta level to maintain? I always try to maintain 0 delta, so I guess that leads...
Just to elaborate, you can lose money scalping when the underlying develops a trend instead of bouncing around,correct?
Yes I understand. But there is still no chance of a catastrophic (unlimited loss) that you usually associate with a naked short position. Correct?
If I buy an ATM straddle and on a daily basis, I scalp the gammas to remain delta neutral, then is it fair to say that the total max loss on the...
Thanks. I should have been clear. I did not refer to 1:1 stock:option...More like a 0.5 : 1 for stock:option. My opinion is that the straddle is...
Umm...actually at work, I cannot open up those elaborate platforms...because of firewall issues, need something quick and dirty
Are there any free websites that would send email alerts for a condition like below: Send an email when the delta of the May 29 BB (blackberry)...
Got it, thanks. But is not the profit potential the double for a straddle position as opposed to : 1.long call + short stock 2.long stock + long...
Thanks. What do you mean by balance sheet problem? I am an individual trader, so I dont have any restriction against shorting. Are you talking...
Let us say I want to do volatility trading. i.e I conclude that implied volatility is cheap and will rise. So I need to set up a delta neutral...
Premium should already show up...if not, allow one day for option trade to settle. Premium will be added to your cash balance. -1 represents that...
If you trade US equities that gain from a declining dollar, then no need to hedge. What companies are you holding/trading?
I am so sorry, I was only thinking of a covered call. Of course you are right.
Correct, long the option. or short an European option.
If you are holding all your options to expiry, then greeks are not that important. But if your are 'trading' options, they are the most important.
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