The perfect option formula. Enter a stock and it will output the option to buy for a 10x trade, xandman had been working on it for a few years and his efforts have finally paid off.
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You were not the only one to bail out too early. Volume doubled the day before the big spike from the previous day - lots of people sensed something was up.
March 18 Volume: 202,881
March 19 Volume: 573,101
March 20 Volume: 6,630,243
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There are pitfalls of hedging to lock in a fixed price over a period of time. What if costs drop over the 7 years, will your customer expect a lower price also?
A few years ago a natural gas company in my area was trying to compete with the major gas company (BC Hydro) by buying natural gas...
Forget about the greeks, you are just adding unnecessary noise. It's all about market sentiment towards a stock.
Which stock?
Which options are you trading, expiry, strike?
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You just posted a 3x trade.
At the time of your post (12:16 PM EST) the SPY was trading at $207.17.
SPY closed at $210.42 today.
207.00 SPY March 20 Calls closed at $3.61.
207.50 SPY March 20 Calls closed at $3.10.
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I assume you mean selling the options to collect the premium. "purchasing premium" is an oxymoron.
No I would not sell short ITM options. The idea behind selling options is to hope they expire worthless so you can keep the premium, so you sell only ATM or OTM options. Also ITM options could...
The position gets overrun when the underlying makes an unexpected move. Options are priced so that it doesn't take much for your position to be a winner or loser based on how the underlying moves.
It's all about the underlying.
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Back testing has very (if any) limited use. Show me historical data for stock option strategies from 100-500 stocks over a 1-5 year run and I will show you F*CKING NOISE. Option positions have the same characteristics, in most cases they are VERY CLOSE to being a winner or loser. That's the...
Garbage in, garbage out
If you are serious about an answer to your question you have to give some basic info such as:
Stock
Option strikes
Option expiry
Date of entry
Cost basis at entry
You only provided #2.
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I assume you are referring to a butterfly: Long 1, Short 2, Long 1
If so there is no alternative. If you want to sell options and collect a juice premium due to earnings the only way to protect yourself from a bigger than anticipated move is to buy the wings.
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You don't have to scroll the spreadsheet at all. Let the spreadsheet's sum function do the work for you and use a bit of critical and analytical thinking while you look at the results.
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