What Sle said !
GOM = gulf of mexico You don't calculate the premium. The market does. Premuim is the price you pay to buy a put or call. You can buy the...
Well different strokes........etc. Personally I believe you are throwing your 1K away in a trade like that. I'm assuming you're talking about...
Of course. Not trying to be snarky here but don't try to over-analyze this. It's not that complicated. Think in terms of the position at...
Just calculating a simple percentage. If you realize a gain of 3$ on a 1$ investment (OTM) or 5$ on a 2.50 investment (ITM) the percentage gain...
Inherent in a limit order are the words "or better". If you place a buy limit at 500.49 and the true offer is 500.25 you SHOULD be filled at...
The position described by the OP would require that the trader have a bullish bias on the stock. That being the case, IMO it's a lot simpler...
IMO you need something more basic than Natenburg. Try the CBOE site and their tutorials. I believe you are confused because you're...
The percentage gain on the OTM call is greater of course because you have less money in the position initially. BUT, the delta on the ITM is...
If I were in your shoes and you are still long term bullish, I would prefer to sell a Put credit spread. Take in premium rather than lay it...
Not that it will matter but, on page 244 of ""Options; Essential Concepts and Trading Strategies"", is a section titled Covered Writing...
Maybe. It depends on the magnitude of the move compared to the spread. The spread caps your upside as I'm sure you know.
Man the average volume is so thin on FDS that any move could really be exaggerated. I'd steer clear of that one prior to earnings, but that's...
Excellent point !
They went up in smoke as I recall
I agree. Even if you have correctly called the direction of movement after the earnings announcement, the vol is likely to contract...
If you own the stock, perhaps you should consider putting on a credit spread rather than the CC. You take in some premium, the stock CAN still...
I have a word of advice for you. Make the trade when it's there rather than scheduling one trade per day. It may take a couple days for things...
Good explanation DMO. the carrying cost of the option is the opportunity cost of the funds committed elsewhere.
If John is gay, he is probably long a spread, possibly long a strangle but certainly long a straddle. If the market moves against him he may...
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