How would it not be adjusted for interest paid? It would have to otherwise one could buy the bond(collect interest along the way) and sell the...
Thanks Robert! Just so I am clear... When you have 1,000,000 in a brokerage account and you buy 2,000,000 worth of AAPL, you are charged...
I assume its like an equity index in that it is adjusted for dividends(interest), but are there any other funding interest fees to buy? As I...
Thanks. Is my example correct though? The link to Tastytrade has a wrong example, right?
Is this right though?? From the link... For example, if a $100 stock is trading with a 20% implied volatility, the standard deviation ranges are:...
Ok, so if I see a SPY IV of 13, that is a log 13%, not a linear(Or geometric? Whats the "opposite" of log?)? So the actual 1SD change over the...
Is it correct to say a 2 standard deviation move to the downside is impossible(on a yearly basis)? ie something can't go down 200%. Same question...
I just meant forward as opposed to spot price. Not sure what a european combo is, but I always thought equity forwards were priced using Rf and...
So what would cause a stock like TSLA to have a delta of 56 on a 90d ATM call? Risk free rate and high vol?
Hello, Do options only have a delta of 50 if the FORWARD price is at the money? I believe there is a residual amount which is influenced by...
I put on some $20/$30 and some $25/$39 box spreads. I closed out the $20/$30 for a profit before year end. The $25/$39 are still open, but will be...
Thanks Robert I am pretty sure we are saying the same thing, I am just not using the right terms.
Thanks. My point is if you are long something at -11 and it goes to -10, you gained 1. On my platform it does not indicate that this is a short...
Buying at -11(Adjusted IVs) [ATTACH] At expiry, $100 profit [ATTACH]
I should say it would expire at -10(you are short higher put and lower call). If you are buying at -11 and it moves to -10 at expiry, its a...
Well buying it for -$11, meaning you get an $11 credit. If it will expire at $10, how is this not a guaranteed $1 profit?
Hi all, Assuming flat IV and no market frictions the buying the below basket of options should give me a $10 credit, expiring at $10, correct?...
Thanks for the responses guys! My confusion really comes from the fact that the mid prices have the same IV. If the IV lines up, the prices should.
Hi guys, Theoretically, if your put and call IV is the same, there should be no difference in putting on a Bear Put spread and a bear call spread...
But a strike that it ATM has an even greater chance of being in the money if vols go higher. It still doesn't make sense to me. Vega peaks ATM....
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