You're obviously an idiot who understands very little about options. Buying or selling options is nothing about hope or prayer, its about understand risk/reward and the fundamentals of the underlying. Just keep yapping away you just seem more and more ignorant by the post.
I have to give you props for honesty. When you stated on page 4 of this chain tht you don't have an in depth understanding of options, you were telling the God's honest truth! As for size, I'd be willing to bet that the average annual amount of equity trading in my account far exceeds what you'll earn in income in your lifetime. And I'm willing to put money on that. Are you? I doubt it... so give me your next clever jab to help you rationalize your market inadequacies.
Correct! One of the biggest obstacles to trading options is the time decay. You have to be right very quickly and the move the stock makes needs to be fairly substantial to drive the option price to a nice return. There there's the slippage. Trading options is much more difficult than trading stocks. Personally, I prefer the futures markets and stocks for investing with options to hedge or the inverse ETFs. It's a matter of finding what works before for your strategy and goals. Speculating with options ain't for me. I'm a consistent loser in that market. Speculating in futures is a winning game for me so that's where I play. I just love the Oil contract. You can also ride bonds for quite a while.
They have moved this thread to options. What does the prob above has to do with the delta? The reason a call has a price is because the above prob and the delta are not equal. Still waiting for an example where ATM call delta is equal or less than 0.5. How come it is taking so long to come up with just one counter-example? Maybe it does not exist.
1 year call struck at $100 Spot is $100 interest rate is 2% Dividend rate is 15% volty is 30% Delta is 0.3344 or 33.44% and this option is "At The Money" e.g strike=spot. Is this what you were looking for ? (This is a pure B&S)
There are 277 million bbls of oil in the US reserves, we need to use them to save US AMERICA. We also need to stop oil futures trading.
No. That 's 'At the money forward', and just for european style options. Sorry. But please, would you show us the forward for american style ones. You have all the time you need. You may need some help : "An option is at-the-money if the strike price is the same as the spot price of the underlying security on which the option is written. An at-the-money option has no intrinsic value, only time value" (McMillan) That means no intrinsic value for the call and for the put, eg strike=spot.
I will respectfully disagree here. There are plenty of ways to play options, just just straight shot call/put buying on a directional play. There are ways to hedge time decay, ways to increase leverage, and a host of different strategies for all kinds of markets. But the strategies can get complicated and you spend time adjusting and readjusting your positions depending on how the trade is going. It's not something to learn overnight but it can be very advantageous.