CDcaveman, maybe the lack of response is because it's unclear what the question is. Hedging options on futures with the underlying futures is...
This is all really just "options common sense." I'll try to illustrate with a few examples. Let's imagine options on XYZ with 300 days...
Sure you can, but it's not free money. There are lots of ways to get short premium and delta neutral, and they all carry the same risks. You're...
The more time remaining, the higher the vega and the lower the theta. So if you buy back month options and sell front month options at a ratio...
To calculate speed of your position at any particular moment is not enough - more important is to have a sense of what will happen to your...
Here are some important points surrounding gamma of gamma, in prose: The more time remaining, the more "stable" the gamma is, and the less...
I saw the same report, and also didn't know what they were referring to. Wasn't that the worst journalism ever? They say volume is severely...
Let's say you offer a call at 1.00, and Joe Blow buys it. Your contract now is not with Joe, it is with the Options Clearing Corporation. Joe's...
You have to use the RIGHT underlying to calculate an option's implied volatility - not the one everyone else is using. There are arbitrage...
Here are some differences: For ES options, it's as easy to short the underlying as to buy it. When you short ES it will never be called away...
Glad you found it valuable, and thanks for the kind words. I do teach some seminars at option prop houses for support personnel and trainees,...
Buy lower strikes and sell higher strikes at a ratio that makes you gamma neutral, then even up your deltas by buying/selling the underlying. Now...
If you have TOS you can click back through daily option prices for the past several years, although some here have complained about the accuracy...
First, understand that for your purposes the price of an option is its implied volatility, not the number of dollars and cents you pay for it....
You guys are confusing yourselves with math. Go back to the basics. The BS assumes that the underlying moves in a random walk, and that the...
Right, they were ATM puts. My bad. That's funny about his failing to report the loss, especially since he made a big point in his letter to...
In his letter to shareholders, Buffett explains that due to the effect of inflation and retained earnings over time, the probability of stocks...
In order to determine a "fair value" for an option, you have to first assign a probability to each possible outcome. Which is to say that if...
Google "jump diffusion option pricing" for an alternative model that takes into account the possibility of occasional major events where markets...
Right. That's what Atticus was alluding to when he pointed out that the 18 put and call were just a nickel apart with the futures at 18.05....
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