Search results

By knowing you want to maintain a call position for a year, you can view the rolling as a spread strategy. Roll out is a debit calendar spread. Roll up/down is a bear/bull vertical spread. Rolling both is a diagonal spread. In all cases, the short option is the one you already own and will be...

You need to view these leveraged ETF as a proxy to a basket of futures contracts. Decay comes from rebalancing which forces leveraged ETF to buy high and sell low at the end of the day in order to maintain proper exposure for the next day. They go longer as price rises and shorter as price...

Maverick74, care to elaborate on the disaster potential? Blueplayer, I understand option market makers are like a blackjack dealers. In the long run, they win, but the deck can be in the player's favor at times. I'm also thinking that the greeks are so ingrained in option trading culture that...

I have been studying options for a while and couldn't find any information about this concept, so I'm hoping someone with more hands-on experience can chime in. The setup is a straddle with gamma scalping. Instead of buying options with short expiration date, you buy far away options. I'm...