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@jamesbp for the rates you can assume 3%/year call prices 15DTE call @2.8 =0.0522 15DTE call @3.4 =0.0020 141DTE call @2.8 =0.1910 141DTE call @3.4 =0.0336

@jamesbp ok so, underlying trading at 2.8 ATM puts 15dte put @2.8= 0.0568 141dte put @2.8 = 0.1499 I'm looking at the 3.4 puts, 15dte put @3.4= 0.5986 141dte put @3.4 = 0.5845 interest rate = do you meen the risk free rate to plug in the BSM? exercise Is european style. no dividends...

Do you understand chinese?

@Doobs789 yep thats what I did for a 1lot.. seemed a bit too good to be true so I didnt jump in it full capital.. the symbol is 510050

Nope, it's on the 50ETF, China. (Or Chayna, if you prefer Trump-style.)

Ok so.. I found a situation where on the far ITM put side the short dated put(15DTE) is more expensive than a long dated one(150DTE). Same strike of course. IV is low on the short dated, and rock bottom on the long dated. If I look at the graph on the analyzer looks like free money, but I...

I can think also of another scenario, where one trader could be moderately profitable but undercapitalized. Of course this is unlikely (being undercapitalized goes against being profitable), but possible. Under these circumstances, providing a mentoring service could be a way to get some...

My big unanswered question here, (cit. Destriero) is not about edge but about structure. What is the best way to hedge this trade? long puts or short calls? Buy a few ATM or buy a lot OTM? If starting with a partial hedge how much % to cover? I was hoping that some of the big options guys on ET...

The base assumption for me taking the trade is that the stock will outperform the index. Assuming I am long puts, my expectation is that eventually the stock gains will outsize the put losses. I agree with you that having a perfect hedge is useless, but consider that the deltas of the options...

This makes a lot of sense.

o thats exactly what I have been doing so far. However I would like to try using options instead of a hard stop, mostly to avoid the frequent whipsawing associated with a breakout system.

??? I mean, on which timeframe are your strategies running? I assume they would be fairly long-term

thats my point. I dont have much choice in my market. The index ETF however does not represent a big basket, its just 50 big cap stocks. Correlations on most components are fairly stable, on average around 70%, I would not consider lower coefficients. Could this be a mitigating factor? ETJ...

I am just an option noob, but there are a few things that I learned (by losing a bunch of $$): 1) pay close attention to the evolution of the trade (the blue line on optioncreator), not to the terminal distribution (the orange line). 2) On the analyzer, try to increment the days to expiration...

So true, so true.

Hello everyone.. so, let's assume that I already did my analysis and I decided to buy stock A. My system however has the classic distribution of a breakout system, with a few big winners and many small losers. There is therefore a good chance that stock A will go down. I would like to hedge my...

So.. I'm going back to my original post to write how things turned out for this fractional ratio strategy: The most important lesson that I learned (the hard way, of course), is that the ratio can never be too steep. At the beginning I was thinking that 1:1.5 was fine, but the problem is that...

I didn't mean to say that 40-20 dte is peak acceleration, but simply that it is the time frame when the decay becomes more noticeable. Sure the decay in the last few days is greater, but it's a way more dangerous spot to be short..

every short option got +theta.. it increases ATM and decreases OTM/ITM, increases with less DTE and decreases with more DTE. Considering this, the highest decay would be an ATM option about to expire. An ITM/OTM LEAP would have the least decay, so totally the opposite of what you are looking...

Hi all, I have one quick question: anybody can recommend a (hopefully)free option analyzer tool? Either online or as a standalone program. NOTE: I am not trading US markets so I'm not looking for the platforms offered by the various brokerages, just simply the analyzer where I can input...