Recent content by RGLD

I understand butterflies benefit from high volatility. However, what if it's OTM? Something that doesn't make sense to me is if: Stock is trading at $150: Buy 1x 165 Call Sell 2x 160 Call Buy 1x 155 Call how does volatility impact this? Wouldn't IV decrease if the stock approaches the 2...

I got a stupid question. Is it possible to track a specific spread combination over a time period with that? Say you want a Jan'24/Feb'24 Calendar. You can probably look for the historical price with IV of that specific combo right?

Yup this is what I have too, I guess this is the only way to do it. Would you recommend 3d?

Usually the X is strike price and Y is IV, creating an IV "wedge". However if you want to see how this is compared to last week you'd have to make another wedge. Which could be a pain if you want to see a large time frame. The only way I can see this is with a 3d graph - with the 3rd dimension...

I guess the benefit is no penalty CD's and liquidity? If your mortgage rate is higher, wouldn't it make sense to use that cash to pay it off instead? My mortgage is 6%, some fixed rates are at 6%, so it'd make more sense for me to pay it off.

Robinhood is offering 1.5% and 4.9% APY for "un-invested" or "Free" cash that is in your regular and Gold Membership accounts respectively. That's great, I don't need to commit to a CD or anything, it's just a savings account. Is 4.9% APY a lot? Are there other brokers doing this and are...

Does Option IV counteract Delta? If you look at any IV graph, IV increases with options that are further away from underlying. IV increases options value. However Delta decreases options value too. Thus in the end, Delta wins even though IV increases like crazy, the option is nearly...

Basic as in 2 legs. I would not leg into an iron condor, probably too much slippage. If you're doing a Bull spread for example, would you leg into the short put first and buy the Long put later? I've seen options traders just treat it like buying the stock, they put a stop loss on the...

How linear is Theta on the below graph anyway? Doesn't Theta change all the time? How is it Linear with this basic graph? Are they telling me if I traded KO options vs Tesla options, both their theta decay would still look like this??

How would you juggle so many different variables in an options trade? I heard you can model a graph on thinkorswim, but you can't map just the deltas can you? Or vegas in a spread?