Let us say I bought a 12 - 13 call spread on BB. At the time of the trade, BB was ~ 12.50. So I buy the 12 call and sell the 13 call, both to...
I cannot figure this out. I know how the PnL graph looks, but is the trade long volatility or short volatility. I am trying to figure out if it is...
Thank you. The 12 strike(delta = 63) has IV = 44, the 13 strike (delta = 44) has IV of 47. So, you are saying that because IV is more for 13...
With Blackberry (BB on TSX, not BBRY) at 12.30, I entered the 12 - 13 bull call spread, paying .86 for the long leg and getting .40 for the short...
Maybe I am wrong, but this is how I calculated: Initial long:152 * 22 = 3344 Initial short: 95*44 = 4180 Current long:152 * 82 = 12464 Current...
Thank you.
Please consider this scenario: Stock is at 20$. I short the 20 put (1 month to go) for 0.25 , hoping for a bullish move. Stock goes up to 20.20...
Thank you very much dolemite and sonoma
Thanks. Will it always be possible to close before expiry...considering deep ITM options can have liquidity problems?
Is there a way to extend the put call parity synthetic relationships to cover multiple strikes? For example, I always hear that a covered call is...
Did you mean this guy? http://www.amazon.ca/The-Volatility-Surface-Practitioners-Guide/dp/0471792519 The title says 'practitioner', but looks...
I recently legged into a USO may 22 put butterfly (+1*19 -2* 19.5 + 1* 20) Can you tell me how this position will look at expiration? Is my...
Thank you all. Will need to reread the book. It really is one of the hardest books I have read.
You get assigned on the short put and exercise your long put to get rid of the stock...hopefully keeping most of the 5.00
Let us say with the underlying at 100, I bought the 100 - 105 bull call spread for a debit of 3.00. Now, if underlying plummets to 90, the value...
Is there a way to find a free copy of Charles Cottle's Coula Woulda Shoulda and Position Dissection books on the internet?
Charles Cottle improves on the traditional zero cost collar like this: 1.Buy stock 2.But OTM put 3.Instead of selling an OTM call to finance the...
Why is the IV of the BBRY call options with only 2 days to go so high for ITM and OTM options? Should not less time to go imply less volatility,...
"If you hedge you will make a little bit of money if the stock goes in either direction". Thanks. Should I not make more if the stock goes up 5%,...
It is possible that it is mispriced. You should probably look to capture the arbitrage profit of 8.52-7.50= 1.02. Exercise all or part of your 50...
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