You are giving up edge when you trade ditm options. You will get a much higher chance of mid fill going long stock short call than going short ditm put. Just my 2 cents worth.
so, now in NFLX you have created a vol view (either to support your current position or before you initiated your current position). Does the current trade best reflect your vol view? btw - I agree with your vol view and I am positioned for it. But I will probably earn more per share than you will if my view is correct.
they are so good at trading in fact they have loads of free time to troll innocent angels such as myself.
Just exactly what are you implying? Excuse me for coming here trying to learn or perhaps teach a little also. Is that what you call trolling?
If you are ignoring volatility, and simply attempting to profit from price rising by an unspecified amount over the next 6 weeks, have you compared your strategy (risk:reward, breakeven etc) to simply selling the AtM put? It would seem that you are accepting a tiny premium (USD3) for a lot of risk (USD377 - so less than 1%), with a breakeven price (at expiry) close to current price. Using your NFLX example, the April 380 Put is c.23, which would seem like a more favourable way for you to achieve my interpretation of your objective. I'm not recommending this BtW(*), just suggesting that you model both if this is your chosen path. (*) been there, got the t-shirt!
Why would I buy ONE NFLX 450 call as opposed to the Delta equivalent of the short put? Are you basically saying that a short 450 put offers the most edge if one is bullish??? Or in your case,bullish up to 450??? Stocks been cut in half,if im taking 99 percent of the downside risk,im not synthetically shorting the 118 percent spot call for 50 bps or so.Havent looked,but I doubt the buywrite offers any "edge". That's the point NWD and I are making...