Recent content by TradingDemystified

When you are on the other side of that (the one that is long a DITM call that is trading for less than intrinsic) you are in fact incurring a loss if you sell. My comment was related to how to avoid those situations by not letting those positions you are holding get too far DITM (hence being at...

You don't need to have zero time value for an exercise to be worth it. It just needs to be less than the upcoming dividend.

Same here, OTM options are way more liquid and tradeable. Once you have something that's DITM you are either sitting on a pretty profit or in some crappy situation. Both of them justify a synthetically equivalent move to OTM options.

I don't know which platform you use but IV is trackable in most brokerage platforms. If you want to use options you will need to learn IV and most (if not all) of its intricacies. If you feel that it is too complex or not sufficiently rewarding for your efforts it might be better for you to...

Oh they respond as expected. You just need to know what to expect and that takes some time reading, learning, experiencing and arriving at your own conclusions about Options behavior.

Yes, even if it's ITM by $0.01 ($199.99 in your example) you would get exercised which, since you have long stock with your puts would mean that you sell your stock at $200 (minus transaction fees). If you didn't have the long stock with your puts you would automatically be short the stock if...

This acceleration occurs in the way you describe very close to ATM. OTM (delta 20 and further for example) has a smoother decay (and gamma/theta expansion) as expiration approaches.

Not to burst your bubble but there might be just a little bit more to options than that. If you are seriously thinking about using options try to learn more about them first.

It depends on whether you want to be long or short the Iron Condor. When a trader talks about an IC for the most part they mean they short it meaning that they receive a credit and hope that the underlying expires between the short strikes for max profit. If this is what you want you should...

The problem is that if you are "sure" it's a one-off, the market most likely knows it too and already reflects it in lower levels of IV. I do agree however that this process is not instantaneous and there is some profit to be made as the repricing of IV is in process after a (kind of) binary...

Turning your trade into a fly is a way to start conceding defeat (on this trade) but still salvage a few cents leaving the possibility open that you could still scratch the trade later on. It doesn't use any additional BPR so that's an advantage.

? Would you assume there is a market tell (direction-wise) based on retail trades?

Volume, OI, etc are useless as any indication of anything (other than obviously liquidity) because you don't know whether a certain trade is a stand-alone or part of a strategy or hedge, etc.

How much is the 64/66 Call Spread going for?

I agree with all the recommendations so far (McMillan, Hull, Sinclair, Bennett (amazing), Natenberg, Cottle) and would only add "How to calculate Option Prices and their Greeks" by Pierino Ursone. It has helped me a lot to be able to do very quick calculations and estimations instantly without...