So, I think I just created some stock option ALPHA for you guys...

Hahaha!

 

And that is exactly why you should have specified which.

 

Dispersion! Whoa. Mind blown.

Can you fucking STOP starting threads in which you expertise is that of a newborn?

 

i thought about ignoring him but his pollution is everywhere: like needles on the Jersey shore. The only solution is to go to the hamptons.

 

LOL, you guys kill me.

But I'm right, right?

 

You’re wrong, Wrong?

 

You state a hypothesis as if it's a theory you have experience with. My child often did that too.

 

How am I wrong guys? Seems pretty legit to me...

 

First, you need lot of firepower to pull this off, and a good wind on your back. Second, by sell puts, essentially you are capped at certain cash flow returns. Option is a depreciating asset, all the greeks are not there for nothing. Either you are net long or you are net short, can’t have both ways.

 

Thanks mervyn, but I'm not quite following. If one sells call options on call it $100,000 of notional value of 10 of the biggest QQQ high tech stocks, with a strike price as close to the trading price as possible, and one then purchases call options on $100,000 of notional value of the QQQs, again with the strike price as close to the trading price as possible, it would seem to me, while one will not be PERFECTLY neutral, they should be pretty darned close!