Short theta > long theta

Discussion in 'Options' started by wxytrader, Oct 23, 2024.

  1. #71     Oct 24, 2024
    Real Money likes this.
  2. vanzandt

    vanzandt

    Yeah the 9-N's don't bring that much money, but the irony of that is because there are still so damn many of them out there working daily.

    But still, ya gotta admit, that is a pretty machine. And the one ones with an aluminum cowl are hard to find. An original that is. Lots of aftermarket stuff, of which that photo I post could easily have. Which is probably why it went so cheap.
     
    #72     Oct 24, 2024
  3. taowave

    taowave

    In a nutshell,though "Rubbish" doesnt appear to be a term Ferruccio would use :)

    "Right off the bat, a longstanding legend holds that Enzo Ferrari taunted Ferruccio Lamborghini into building cars. But did it really happen? The legend differs widely in the telling, and it usually goes like this:

    Ferruccio Lamborghini had problems with the clutches in his Ferraris. After repeated trips to Maranello to have them replaced, he demanded to see Enzo Ferrari. Some say Ferrari refused him, but Lamborghini claimed he delivered his message in person: "Ferrari, your cars are rubbish!"

    The reported wording of Ferrari's reply varies; according to Lamborghini, it was, "You may be able to drive a tractor, but you will never be able to handle a Ferrari properly."

    "This," Lamborghini later said, "was the point where I finally decided to make a perfect car."


     
    #73     Oct 24, 2024
  4. I think that was aimed at me. :)

    Selling a put can be a bullish or bearish endeavor. It's really just depends on the circumstance. If my goal is just to collect premium, then I would be entering with a bullish bias obviously. However, if I am starting to leg into a long position, then I would be entering with a bearish bias expecting price to continue to fall, as I would continue to accumulate shares and collect premium.

    In other words, the sentiment of a short put is determined by my objective, not by the markets definition. :)
     
    Last edited: Oct 25, 2024
    #74     Oct 25, 2024
  5. You have to account that most options traders do not want to be assigned the underlying, that is why writing a put is considered to be a bullish point of view.

    You would know that if you were familiar with selling puts.
     
    #75     Oct 25, 2024
  6. ??? I practically invented selling puts!

    I understand selling puts more than you do apparently.

    First of all, IF that's the case then the majority of options traders are too leveraged and too under funded (and too stupid) to have a choice lol. Secondly, I literally just explained why writing a put is not always a bullish point of view lol. When you are legging into a position it makes ZERO sense not to sell a put...unless you think you can get the EXACT bottom, which we all know with the competency level of TA around here that ain't likely. :)

    Buy 100 shares @ 10 and your b/e is 10.

    Or

    Sell 1 10 strike put for $2
    Get assigned 100 shares @ 10 = $1000
    minus $200 premium
    =800/100 shares=$8
     
    Last edited: Oct 25, 2024
    #76     Oct 25, 2024
  7. taowave

    taowave

    So your directional bias determines the delta of a short put??

    Is that an input to your model?

     
    #77     Oct 25, 2024
  8. Gotta make those car payments!

    [​IMG]
     
    #78     Oct 25, 2024
    cesfx likes this.

  9. thought they were short some real wingy stuff, would love to hear the insider story.
     
    #79     Oct 25, 2024

  10. from my experience yes but I'm sure different with buyside/sell side and amongst different shops etc. I come from the bond world and I've NEVER heard anyone say they're long dv01 when short a bond haha.
     
    #80     Oct 25, 2024