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Boy, this thread is like looking at the scene of a car accident after the clean up crew has come and gone - still morbid but now also dull.

I see what you mean, I think I misunderstood your post about theta, sorry. Cheers ra1

You guys are all delightful. ra1 :)

Hi profitaker I was just going by L. Mcmillan's book "options as a strategic investment" 4th ed. page 862 where he gives an example of theta "if an option has a theta of -0.12, that means the option will lose 12 cents PER DAY". Also all the pricing models I have used give me theta as a per day...

There are too many options.

Profitaker But that's the point - the difficulty is working out the greeks, or interpreting them, for an option that is 1/ european style? 2/ has multipliers. The greeks given and the subsequent calculations based on them just don't make sense (if you look at the previous posts you'll see...

I am amazed that some people still think naked puts are a significantly safer choice to naked calls (yes, technically they have limited risk since a stock can only go to ZERO, but practically???) - as if a stock would rise by infinity overnight (or ever for that matter) which is what they are...

I agree with emjroll (again).

Hmm, if what has been said so far is correct (see deringer's post) then it seems that a 1% increase in iv (vega +0.0008) will almost double the value of your put (from 0.0009 to 0.0017) - pretty impressive for such a tiny iv change. On the other hand theta is -0.0002, so for each passing day...

The answer to your question is impossible for anyone but you to answer and depends totally on the life you want to have - making a good income with good hours or making a reasonable income with maybe harder hours. To be honest you have two good choices and noone can look into the future, so it...

Hi momoney Thanks for asking why I attend so many seminars of what would appear to be the same thing. The reason for my many attendances at the optionetics seminars are 1. options are complex and take time to master and I'm probably not the quickest learner. 2. different traders present at...

Hi mte As far as I know, a bull call spread, no matter how long to expiry, will be profitable or at least at breakeven if the stock price moves up today/tomorrow/next week provided premium decay from time erosion doesn't offset the increase in premium from the rising stock price. Obviously some...

Dear mte Optionetics doesn't "just throw out a few ideas" - all the things you have mentioned in your post are the things optionetics recommends you do,starting with plotting your risk graph. How do I know this? I've been to their seminars eight times (the last seven for free) Happy trading :)

Hi frankr The only reason I can see why your position would be losing value is that goog iv is rising. If this was not the case then your long should gain more value than your short. Furthermore the rise in iv must be greater than the rise in shareprice for you to lose premium (and I don't...

I'm afraid I have to agree with emjroll.

Hi frankr First, relax. Your max risk is what you paid for the spread and second, the stock is moving in your expected direction. Third, are you still bullish? If so then hang onto your position. If not and you are now bearish, then simply close the spread (sell the calls you bought and at...

If you entered the trade on 1/20, goog ranged between 394 and 440 and so it depends where you got filled - if your fill was at market you may have paid maximum premium on your spread on that day. Since goog is now at 443 (the approximate price you may have been filled at on 1/20) you would have...

Hi all Not everyone has access to a mentor, nor do we all learn equally well - some people can get by just with books, others need seminars and a very few can work it all out from basic principles, lol. Most traders work alone and that is why these type of messageboards exist - so we can help...