Search results

This is a papertrade that I'm putting up to be pulled to shreds by you guys, bearing in mind that I have primarily been a FTSE100 index short strangles/ratio call spread merchant, and with IV down at around 10 - 12 it has finally made me throw in the towel so far as selling index volatility is...

murray t turtle - I also like to get "bang for the buck". I read everything I can get my hands on, but not sure how your approach can help you scan the market for opportunities. e.g. Volatility Skews between and within series.

I've been trialling the Optionetics Platinum package, and it comes to an end tomorrow. I must confess that I quite like it as a concept. The interface seems reasonably user friendly and intuitive, but it is sooooo ssslllloooooww! Admittedly this may be because I am using a 128KBS ISDN...

Maverick - I agree that it would be difficult to make this work with low IV at the moment, and if you could only put on the 80/85 ratio spread it wouldn't be worth it. But I was able to put on this position a couple of years ago on Abbey National (ANL), a UK banking stock. Share price was...

vhehn - that's why I added the proviso that you should choose strikes and series that enable you to put this on for nothing. I agree that in practice you won't buy an ATM call by selling 2 calls 20pts OTM, but the principle is there. Maybe sell 2 x 95's and buy 1 x 85 would be more realistic.

hjcolvin - if the stock does tank you could try a repair strategy which to all intents and purposes is a short ratio call spread. Say the stock tanks from 120 down to 80. Your assessment is that it will recover and you don't want to sell, maybe for tax reasons or whatever. So for each 100...