I understand the desire for the home run trade. But looking at the Aug 75 puts as an example, trading for around $4 on the day before the...
Who said anything about a free lunch? And who really thinks they're going to get that 'unlimited reward"? As far as I know, no stock has gone...
Even at $2.80, which didn't fill, this trade absolutely got hammered.
Either way, long options are going to get killed from the vol crush. Need a gigantic move for them to work out. If you're going to trade...
LOL
Well, it didn't materialize, but I meant to buy to close the Aug1 37 put, and sell to open the Aug2 36.50 put. If that trade could have been...
Optionatrix, Calendar is looking nice. With a little bit of time and a small move down, you can probably roll the short option out/down to...
Looking at unusual volume can be ONE thing to look at, but it's certainly not definitive by any means. The reason, is that you may not know...
Of course the greeks are going to change. That's just the nature of options. Here's how to tell when it's time to adjust the calls for...
Jumping from a calendar to a strangle (or similar trade) based on a feeling? No offense, but doesn't sound like a logical approach unless there's...
I kind of like it. Big reward potential so warrants the smaller amount at risk. I think Bernanke is a master at managing the market's...
Which expirations?
Since you were assigned the short option, that means you bought the call calendar. This leaves you with a short stock position against the Aug...
With options you really need to have a time frame in mind for how long you want to give the stock to do what you think it's going to do. For...
Some broker platforms have the ability to do this as well.
Not suggesting anything with regard to taking assignment. Just pointing out that doing so would give you a position resembling the Aug9th 26.5...
Take the short call into expiry and hold the short stock against your long call (synthetic long put, as previously suggested by Newwurldmn) until...
If the stock tanks, it's like you're buying stock for $21.50 with all the loss associated with that. If the stock goes up, you need quite a...
You can change the vol settings in TOS, which will also change your deltas. Also, there is no "one correct delta". It's only an assumption...
Assuming a fairly flat vol skew between months, the vega of this position would be positive because you own the longer term ATM, which has more...
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