Apple Earnings play

the more hedging you place on an options strategy the less upside there is. Either go hard or go home.

 

My 4-year old has better analytical skills.

 

Well you got the best of both worlds cause you often go home hard alone. I bet you got forearms like Popeye...

 

:bow:

 

What is a vertical skew?

 

Sold the AAPL Jan09 160 straddle at 51.40.

 

Atticus, why the Jan 09? What about selling a ratioed one if someone is more bullish? (Like sell 10 puts and 8 calls)

 

More vega, less gamma. OptionCoach mentioned it this morning in chat. Sure, ratio it if you like.

 

It does look like a very high probability trade. Do you predict a 10% drop in IV on those?

 

I understand the lower Gamma, but how can we have higher Vega when we agreed earlier that the IV on the front month will drop more?