Why is it possible to get those returns, why are there over and undervalued options? How can you capture those returns?
OK, so when deciding whether to buy or sell and option you compare the implied volatility with the historical realized volatility. But with which...
I'm sorry if I sounded too harsh. I still have many doubts, that's why I'm just reading and asking. I appreciate your help in that precise...
1. Is it possible to make at least 20% expected geometric mean returns per year? With expected returns I mean that you have studied that your...
$18 is the maximum loss (9000/50)? If I traded this specific spread, I would consider that the maximum loss is much higher, like $40 (a...
For how many years have you had that kind of returns? The problem with that kind of strategies (specially if you deal with OTM options) is that...
I haven't said that I wanted to go long volatility. I was just asking whether the difference between premium/days was exploitable in any way. But...
Well, in this case I'm long the front month (week in this case), so that's not a problem. It is indeed, but because the sold position is much...
OK, I think I understand it now, thanks. As time until expiration increases, there are more ways to make the price drop X%. What's the reason why...
Bad gamble why? Do you mean in the actual situation, because you consider IV is lower than it "should be"? Anyway, I wasn't asking about opening...
Should they be more expensive also in terms of premium/day? Because that part is what doesn't make sense to me.
I have seen that if you wanted to hedge a long position using puts, the higher the strike of the put, the less you pay per day if you buy puts...
Sure, like Astrology...
How did you do during 2008? Still averaging a "safe" 5-10% per month?
It was solved automatically on Sunday. The same has happened to me in every options expiration from that one.
I have been trying to contact Interactive Brokers but they don't offer any support until 16:00 EST, so I have thought that maybe someone here...
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