Recent content by coveredballs

interesting dice roll, good luck

how in the world could anyone think Rick Santelli is anything but friggin awsome. The guy knows his shit backwards and forwards, and destroys LIEsman with the greatest of ease whenever that fat Tick opens his smarmy mouth. Santelli pwns.

To DMO and MTE, I guess the one thing I can't get my head around is this, If you only use the underlying to even out your deltas, then when do you get rid of your straddles? And how does time decay not eat into your profits as you approach expiration?

DMO, I read your article on Gamma scalping and was wondering if you could scalp another way. Instead of buying or selling the underlying to get back to Delta neutral after a price movement, could you instead continually sell off your options to get back to Delta Neutral?? For...

This could sink Golden Slacks to the firey depths of hell. Buying puts and lovin every minute of their mis-fortune!!

Yes, I have experience in trading options without knowing anything about the greeks...........and I got murdered. It would be extremely foolish to even consdier options without understanding at least delta, and vega. It's like flying a plane without intruments. I learned the hard way, do...

You could try a collar, either costless (less reward on the upside) or get less hedged by buying a lower strike put. It's all risk reward, no way around that yet:cool:

First of all, every options decays, you are paying theta, period. Leaps are a great stock substitute. But you should only buy them deep in the money IF it's a stock substitute, 87 delta or higher. You can also sell front month out of the money calls against your leaps to offset theta and...

Just to clarify, are you saying instead of selling OTM calls in say April, I should go further out to say July?

Thanks spin.

I don't like buying Theta. I use LEAPS as a surrogate to the underlying, I don't want to own gold, just rent it for a little while.:D I'll buy the LEAP and sell premium against it in the front months, two ways to win.

I agree pathus, seems like there are two ways to win here. And if the world economy recovers AND the dollar gets crushed, wow are commodities gonna run!! It almost seems too easy, I wonder what we're missing. :confused:

I agree with you Coral, and I only make 60k a year. But one day I would LIKE to earn my way to the top 1%. Notice I said earn. Sadly, most of our fellow citizens want to sit on their fat rear-ends, watch teevee, and complain how they ain't gettin' theirs. I'm so sad for this once great republic.

Hi Mark, Thanks for your response, I read your blog often by the way to continue my education. So if a LEAP has an .87 delta, and is in the money with very little theta as a percentage of the option price because it has a large intrinsic value, does IV affect the actual...

If I believe that the gold price will rise with dollar debasement, and buy deep ITM calls (JAN2010 80Calls) , how does IV affect leaps? I see that over the past year,for the most part, HV and IV tracked each other pretty closely, but over the past 3 months, IV has broke out above HV. Does...