Enjoy reading your journal, keep it up! Cheers!
That's pretty much it.. But I don't have any set guidelines. I just use these volume value areas as spot's to sell and buy premium around. Rinse &...
The only (HUGE) difference is insurance companies sell premium ABOVE fair value... Put sellers sell below fair value. Lol..
Options are options.. You thought the idea of buying puts was x.... but its also y. A true put seller never wants to exercise, just pure expired...
Hopefully one day I will trade butterflies within the implied space like @destriero does. I have not the slightest clue on how to do that, yet.....
Pure experimentation. But my thesis is I use volume by price to determine where spot will oscillate around. I call them value volume areas. AAPL...
Just entered this fire-fly 132 in $AAPL, 2.32 risk
I felt the same way when I first started trading. Overwhelmed forever and wanted to jump into every arena. But just focus on options and mastering...
Luckily Guy Cohens book is available free on pdf. I also own Al Sherbins book which is one of my favorites.
Will our children manage their portfolios using 7th-order Greeks? Lol.
From warrants, to OTC options, to vanillas, to exotics and beyond. As time goes on the markets grow and expand. Second-generation vol products...
And more importantly than Zomma, is to understand Color
And it makes sense, color is highest at that max sensitivity ATM. I'm wondering if all these relationships because the greeks is because of the...
Isn't there speed in ATM/ITM strikes as well? Isn't zomma largest in the front-month ATM?
Well since the market just hit the highest vol mark one month ago I'm not sure what you mean by lull? Theres been decent movement in magnitude the...
When it is obvious that the underlying stock is going to go up, you could buy back the short In The Money (ITM) call options to maximize profits,...
Well yea its cheaper because the short butterfly is a capped long straddle, but is the magnitude of the move you need really that much different?...
This thread-starter is a legend. Props to you, sir. Cheers.
Hmm... I guess if you sell that additional higher 110 call to hedge your overall portfolio it might make sense, but as a single backspread selling...
I'm curious though... does anyone here trade short butterflies? I've only traded long flies and never personally have seen others trade them short...
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