One other difference is that spreads show greater profits with smaller moves than a ordinary call. If you look at the P&L diagrams, you'll see...
Whoa...this little comment goes very deep. I feel my worldview shifting... If I promise to make offerings on my alter asking the Heavens to...
Gamma scalping is an entirely different strategy than a simple directional bet. It requires active and frequent adjustments (how often and how...
Ok, so it's dynamic - you keep adjusting to get your delta back to zero. I should have realized that. So is this a short IV trade or are you...
I wonder how delta hedging works with straddles since a delta hedge removes directional risk, but with a short straddle, you lose if the...
I never thought of Thinkorswim/TDAmeritrade as a bucket shop, but I was clearly mistaken when it comes to FX....
I don't trade forex much but recently put on a few trades and I noticed that the amount of positive carry that I was making on positive interest...
Yes, you can put more contracts on, but you won't make anything until the underlying trades right up to the b/e point. With plan old deep OTM...
I don't know, one of the main advantages of deep OTM options is that they benefit greatly from Gamma and Vega increases even if it does not trade...
It's interesting, the OP has received a lot of advice in this thread, but it seem nobody has commented on his terrible risk management, which...
So let me see if I understand this. You took a GLD position of 1,200 shares (worth, at the close, $205,000 or so), and you didn't know what might...
People keep saying this, but selling a credit spread is synthetically the same as buying a debit spread, at the same strike prices. There may be...
Buying options eliminates black swan "tail risk." For example, if you hold ES overnight for swing trades, imagine you're long and you wake up to...
Frank, Thanks for you caution. I am still trying to think about risk/reward in the options context, so all advice is greatly appreciated....
Ok, I think I get it. My current trading strategy is similiar to the Turtles strategy - I try to ride big trends (though my entry signals are...
Thanks for the reply. I get the analogy, but black swans are black swans, if things are bad enough to take out 1200/1980, they take out ATM put...
That's out of the money. In fact, it's based on what I typed into Thinkorswim a couple of hours ago, so it's 30 or so SPX points OTM. Yes,...
Hey guys, I am new to options and I'm finding myself mystified by something. I keep reading how a great way to make income in a bull market is...
Funny, I have not checked this forum in a while and last time I was here everyone thought option_trader was a lunatic. Turns out he was right -...
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