I just don't understand why ATM gamma increases (ITM/OTM gamma decreases) when vol decreases or time passes. After re-reading the Natenberg...
I admit, I started the thread as a way to assist me as I study options. I think I see where I went wrong. IV is an an annual volatility. I...
Harold, you must read Natenberg's book. I am re-reading it - some chapters I've read 4 or 5 times. It is an amazing book. I'm going to read...
For near the money options the IV is at 30. Seems too high to me. That's what, a move of $60 or so by end of June? Stock has been moving...
I see. Makes sense. So, my daily "gains/losses" are the increase/decrease in price of the call, right? From $5 to $15, whatever. Because...
Ok, now for my 3rd question. I am bit confused about gains/losses before expiration. Suppose the following (call) - Underlying: 100...
ATM has high gamma, 50 delta, and so on. If that matches your feel for the market's movement, go fo r it.
Guess you lost on that trade.
Ok makes sense. I guess when Natenberg says "sell the underlying" to reduce delta by 100, he means going short. Thanks. I have another...
Thanks for response. My 2nd question: when Natenberg says to "sell the underlying" to reduce delta by 100, does he mean a) short the...
Ok, I'll start simple for my first question. I just want to make sure that I'm applying Delta and Gamma concepts right. (I'm making up these...
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