The collar might be something to consider for a good, large cap company with low volatility and good dividends like KO. You buy the underlying to...
How much credit did you take for selling the spread? And what was the delta of the position? That is a good starting point to assess if the reward...
If this is your first put spread, it is a little bit risky. The reason is that after the front month expires, you are left with a naked call. How...
Look at the delta of the 115 put. That is your rough estimate of whether your option will be ITM at expiry. If you are ok with that probability,...
Hmm..it seems quite a bit to pay 1$ for the OTM option...since they are so far OTM. Considering that IV is not that high, and the expiry is in the...
If max risk was 100, then the option needs to trade for 1$, not 100$. Also, you need to mention the current underlying price and the IV. Not...
Thank you.
Thanks, yes you are right. I was thinking of us options. Can you elaborate why nobody wants ditm calls at par? is it true under all circumstances?
It depends on what your brokerage charges for: 1.exercise 2.stock trade commission 3.option trade commission 4.margin interest Also a point to...
Ok I understand. I asked the question because most brokers except IB charge heavy fees for exercise/assignment. Just factor that into your profits.
You need to talk with your broker. If option is ITM by a certain amount (usually 0.01) by expiry, most brokers will auto exercise. Else, look...
Got it. Gatheral seems to be more for quants and modellers
I got it..your number is the total against all strikes and all expiration months...i was looking at a particular expiration.
Thank you
Let me check with my broker ...i am using questrade...i am in canada
Thanks for the list. GLD, EEM,GDX does not seem to have 50k contracts/day
Sure, will do. Thank you. I will check out gatheral. I have read some volcube articles. Seems like a decade before I can make any money. Thanks...
Thanks. Which book by sinclair...option trading or volatility trading? I am reading 'trading option greeks' by dan passarelli. After that plan to...
Let us say I sell a bear call vertical spread for .20 with the strikes a 1$ apart. So max profit =. 20 and Max loss is .80 Let us say the...
Got it, thank you
Separate names with a comma.