Recent content by jmm07e

Yes, I was using Delta and gamma. I would see how much I wanted the underlying stock to increase. Call it $2/share. Then I would say okay, $1 increase with a Delta of .77 and then a gamma of .15. Then on the second dollar I would increase by .92. The issue is say if you wanted the...

I need to calculate the future value of an option compared to a percentage increase in the underlying security. Example: I own a call option on stock ABC that expires in Jan 2022. The price of the underlying security is $25/share. The price of the option is $6.5/contract. I need to calculate...

I understand. The call will 100% sell using your way, if you use Delta and gamma you just get a little more out of it. Didn't mean to contradict, thanks for the help.

I did my own calculation using one dollar increments and Delta and gamma

That's what I got going so far. It'd be nice to just plug the variables into Excel and price out a limit order. I know there are some templates for sale, and I've even tried to price them manually, but it's imperfect.

I don't have that ability. I use Merrill Edge. I would use interactive brokers, but I work for Citi. It has to go through this whole approval process. There has to be a way.

Ticker**

Let's say ticket ABC is at $15.00 per share and I own an option on the security. If I want to sell the option when ABC gets to $20, how do I price the option? I know Delta is the correlation. But, doesn't Delta change all the time? So, wouldn't it be a different Delta at 16, 17, 18, 19, and...

https://www.google.com/url?sa=t&source=web&rct=j&url=https://financetrainingcourse.com/education/wp-content/uploads/2011/03/Understanding.pdf&ved=2ahUKEwij2ryPwO7oAhXZmXIEHV0pD30QFjAAegQIBRAC&usg=AOvVaw1r56n9IXbOvtznb7FyK-_t

Much appreciated. An explanation would be very helpful to jog memory. I know it's a "God, I got to teach this guy everything" moment.

When I was in school I had this professor who managed money. He talked about one of his clients holding a large Cash Position and buying call options on SPY. They had a math formula for the amount of options to buy to effectively carry a large Cash Position and gain exposure using options as...