1. Buy $1000 worth of the 110 strike of XYZ 2. Buy $500 worth of the 100 strike and $500 worth of the 120 strike Certainly option 2 allows a...
I deleted my last post after rereading and researching net position delta, and so a movement of 19 shares of the underlying is certainly more...
I hope you can check my logic/math here: For example sake using round numbers, AAPL: A) Long 140 of the Jun 2016 160's where delta is .1385; the...
And then assumedly the higher one means more exposure to the stock and thus more bullish...
1. Delta of long call times quantity (the number of contracts) VS. 2. Delta of spreads which are: Delta of long calls - delta of short calls...
Would love some basic assistance in doing so
Well the objective was to use the cash to also obtain a 140/160 spread
Hi - want to understand if this is a more bullish position. Suppose one has the AAPL Jan 2016 130 calls. One can then sell a higher strike...
AAPL
In which case I have to pay a premium and buy the Puts?
I'm not sure I can or am allowed or am qualified to short the stock...
Cause I'm not sure I can sell a naked call. Furthermore, I'm not quite sure how to hedge with the underlying, unless you mean selling it short?
But I can't cause of the 30 day holding period limitation, otherwise I'd just close the spread position.
Hi - Our Firm has a 30 day holding period. Suppose I put on a 135/145 bull call spread that expires in 45 days. Stock rallies in a week. I cannot...
I love the Martingale reference, thanks for keeping me grounded. I agree legging out requires cash that I could otherwise use. I suppose it...
I don't, but without knowing where the underlying currently trades (could be as varied as 110 - 190), what would be wrong with such a spread? (as...
Yes I'm still bullish, and I suppose closing the short is a more bullish move?
Yes buying to close the short position and keeping the long. I'm wondering if I should be thinking if I would be "buying the 200 call at a...
Bull call spread with same expiration. Stock goes down. Let's say it is a 100/200 strike spread. I can now buy back the 200 strike leg at a...
Put selling can be better than covered calls, as there is only one transaction most of the time. There’s a strategy, as explained here, to sell...
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