Look At Those Fat Premiums...

Discussion in 'Options' started by Arnie Guitar, Jul 29, 2011.

  1. I went short the call synthetic (2x1 calls x futures) in case of a sharp drop. I don't expect a trade under 1275 in the next three weeks. I may fly it off, but only if up on marks. 56.90 average on the short.
     
    #11     Jul 31, 2011
  2. iprph90

    iprph90

    okay, short 1300 put short 1300 call:

    break even: 1243/1357: which strikes on the fly?
     
    #12     Jul 31, 2011
  3. No idea. The choice is a function of the vol-line when presented with the opportunity, as well as the duration of the hold. For all I know I may be out on Monday, but I imagine I will be able to hold it through the week. I would fly it off if I could lock say 5 in the fly against a +10 mark in the straddle.
     
    #13     Jul 31, 2011
  4. Out at 57. F this noise.
     
    #14     Aug 1, 2011