A confusing piece if ever I seen one. Delta as a measure of risk is almost a waste of time - you can have 2 positions with the same delta value with one position being very safe, the other very dangerous. Using the underlying stock to dynamically hedge delta of an options position can actually get you into more trouble ! It doesn't get you "out of directional risk", it merely changes it. You've talked about "edge" a few times above, so let me ask you a question - how would you add "edge" to Mr.Union's position ?
the puts hit the shitter. Goog up 5 pts in the last hour. It was just a small gamble on Deep OTM puts (August 270).
well thanks for the mangled lecture on the greeks. but you're wrong directional risk and volatility risk being te same thing. he cant. but he can puke up less edge my way. he should just ride it until expiration, that would be the cheapest...unless he knows more about goog than the market. judging from his knowledge of options, my 8-ball says no.
You're an insecure POS. Can you show me what it is that I don't know about options oh wise one? Idiot. I was just making conversation. I had a few bucks sitting in my account and bought some DOTM puts. Go post on the yahoo boards - they seem to be more fitting for you.
i wasnt trying to insult you. but you said it yourself, you're just gambling with some extra money lying around. so is it unreasonable to assume your idea of google's direction in the next 2 days isnt better than the Nasdaq mm's who trade it everyday or the hedge funds that buy and sell it?
a]Dont blame market makers for what happens in next 2 weeks; thats counter productive. f] Its a bit funny perhaps ,Union 1411, but like you wrote earlier; may want to have the ''discipline'' to hold GOOG options thru about 90 & drawdown Thats not a quote on what you wrote; but something like that
Yup. Dumped them today at .50 (bought at .55). Funny that this news hit one day before expiration. The puts were at .05 yesteday.
Man, I'm not much of a cynic but Goog- which moves up/down 5-10 pts a day - moves just a few cents to end at 279.99?? Hmmmmmm . . . MMs and option expiration? Coincidence?