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... and I wonder why people have such difficulty with this when simple arithmetic proves it? I've often seen guys who have been options professionals say things like - "a put IS a call and a call IS a put". One could argue the semantics, but essentially true, you are just flipping the...

It's interesting psychological study this CC vs NP argument. The equivalence is proven over and over and over again on the Internets, yet people seem to go great lengths and massive stretches of logic to try and prove why CCs are better than naked puts. Why? What is so psychologically...

How does it do that? Presuming you allow the relevant option to be assigned, you end up with the same position. No shares if a close above the strike for both short put and CC, and with shares with a close below the strike. (with a bit of uncertainty if it pins to the strike)

You then increase theta again to comparable levels, because you have more contracts You also increase contest risk (bid ask spread + commish) Just something to factor in.

Doldrums?

This seems to be a rather silly argument played out over and over again on this board. Why not buy, sell and/or spread as one thinks appropriate FFS?

There is probably a book's worth in answering those. Pro for me is that they are NOT a direct replacement.

No, still no difference. You just have some open profit to add to the equation. Think of it this way. You could sell your stock and short the put. That would be the same thing synthetically. So you end up with the short 45 put and some cash in the bank. The only difference is that you have...

No worries Taowave, I was just interested if you (and others) might have a "picture" of them, even if only subconciously. Cheers

Just asking the question out of interest matey, not looking for an argument. But to answer your questions. 1/ I find it helps in my trading. 2/ Yes, but again, I would map that out in my head and have a sense of what my risks and rewards were Greek-wise. But that's just me. If...

Could it be this person had a rich mental map of how the Greeks affected his position, hence had no need for the numerical values? I rarely refer to the actual numerical value of the Greeks, apart from delta, but I sure as hell know how they affect my position.

Funny, And agree. But hard as I try, I haven't figured out a way to put on an IC/DD etc with less than 4 legs. :p Add in an adjustment or two...

The question is: What are you trying to do? I've seen people stick belligerently to both 1 month and LEAP time frames... and everything in between... and never ask the above question.

Understood, But I find the provision of additional legs useful for modelling adjustments.

pengw, Can optionslab do more than 4 legs?

Use a model and use the futures price as the input instead of cash. Hoadley or similar.

Almost any standard charting package will do HV, or be capable of it anyway. www.quote.com standard charts also plot HV if you want it to.

Of course. Every option trade is a volatility bet to some extent. Hang on! Most probably don't and wonder how the market makers ripped them off again. LOL

Your two paragraphs appear to be at odds with each other if I am reading them correctly. The only possible difference is (as you mention) contest risk. Theoretically, greek wise, the same. If the difference is marked, an arbitrage opportunity again arises and you'd have to be "The Flash"...

Think about it. If they were not the same there would be a juicy arbitrage opp. at dividend time. It won't happen. To repeat, they are the same.