Recent content by candeo

Could you please explain?

if you have a long-term bullish outlook on AAPL, why not buy a diagonal: Buy a leap deep enough in the money that you won't pay too much premium, and sell a front month OTM call to take advantage of IV drop.

What about an earnings play on RIMM for tonight? I was considering the following bullish diagonal : Buy Dec 106.65's Sell Oct 105's What do you guys think? Considering a drop in IV more important on the octobers (historical IV is 45), this should make money between $88 and $126. What do...

Any good Strangle/Straddle worth playing tomorrow for Uncle Ben's speech? We know that we will get a big move one way or the other.

Thank you for the suggestion. I already do this. In fact I use delta on every single trade for position sizing. I have created a spreadsheet where I enter the price of the stock, my stop, the amount I want to risk, my price target, the delta of the option I want to buy, and the spreadsheet tells...

It is true though, as Optionscoach said that when you have a big IV crush, such as after earnings, then the front month usually suffers more than the back month, even if Vega is higher.

Spread, I agree with you on the calendar. IV going up is good for calendar as the longer-term options have a higher vega.

But I do have limited risk when I use money management and stops with an open long call, and still unlimited reward potential, don't you agree? Don't you agree that by selling a call you are only reducing your "money at work", which can be done by just reducing your size, without having to...

This is unbelievable. You are so wrapped up in trying to make a point that you don't to hear me. I told you many times that I trade spreads, that I am interested in looking at how to reduce Vega risk. In my second post here, after asap comments I even posted : "Maybe I should consider...

What parameters did I change? Yes, I am truly curious. I like selling premium, as I do with calendar spreads. I would like to do it as well with verticals, to reduce my risk to time decay and IV drop. My experience has been that it does not work most of the time, either because the premium...

Well, you don't want to hear what I am trying to say, but just insist on repeating that I don't want to look at your examples. This is fine, I am giving up. Just as a last point: - I said I was not an expert in greeks, IVs, etc...this is not my way to trade. It does not mean that I don't...

Nanook, I agree with you, this is in fact what I was trying to say in my previous post: outright call is better when the stock moves fast AND when the stock moves a lot. Not when it moves slowly and closes at expiration close to the second strike. Unfortunately I am not very good at timing...

I agree with you "near expiration". What if the stock moves right away? Then the outright call will be much better. Can you really time this? If so, is buying a vertical at that time a good strategy? All I am trying to say is that in real life trading it seems that it is extremely rare to find...

Well, I already agreed about Vega risk in a previous post. That being said, your example is not very convincing. I am not saying this because I want to be right, but of course if stock does not go above the strike of the short call then the trade is better than the long call naked. I think we...