Search results

Thanks for the free advice atit, it's much appreciated and as always it's worth exactly what I paid for it :D. So are u going to answer any of my questions or just continue calling people 'monkey' (yawn)? db

That's great advice!! Hopefully you will contribute many more gems of similar usefulness because, God knows, we really really really need it around here, especially us noobs. How long did you say you've been papertrading options? db

What ... is ... your ... obsession ... with ... monkeys? You .. don't .. like .. them .. or something - what r.. u ..doing here..? Why do .. you .. want to whip ...monkey ass? Shouldn't --- you --- be --- in an S&M club for that? - this is the options forum...! Hey, I think I'm beginning to ...

Obviously, but until then you're subject to margin. db

The easiest way to clarify what you want is to think in basic terms. 1. You want to roll up your short call in the same month (to keep it simple). 2. thus you want to buy back the short and sell a higher strike, iow you want to buy a call vertical 3. ask yourself 'when is a call vertical the...

OMG the same ... thing ... is happening ... to ... me!!! ............................................................................................................................................................................................................:confused: . . .d ..... b

I'm afraid when you sell naked puts you forfeit your right to a small loss. I hope you like the stock. Of course, as others have pointed out, stop trading before you lose your house/job/family. db

That's a pretty slick looking website. No mention of cost - how come? What success rate does he have with his pupils? Is it better than the industry average of 2%? I notice the 'live freely challenge' only lists people who have made one trade that was successful - no mention of consistent...

But you do get the full cover (even prior to expiry), that's what I and spindro are on about. You are hedging long stock with a long put, giving you a SYNTHETIC LONG CALL. The max risk is then the premium paid for the long call, no matter when/if it tanks. Iow a full hedge from the word go...

Hi MTE I'm a little bit baffled here. I thought the FULL hedge exists from the moment you open the position and reaches its max loss potential at expiry, i.e. the cost of the put puchase. So if the market sold off next week your loss would be less than if it sold off to the same level on the...

The books I mentioned will help you understand options and synthetics and thus enable you to work out your own strategies to protect and manage your positions. From the things you guys have written so far you don't seem to have a good grasp of how options actually work and how they can be used...

Yes, you are insured against disaster but you lose money if there is a downturn - you lose the premium you paid for your long itm put. Read my earlier post above. db

Buying an itm put to protect your long stock position gives you a synthetic long otm call. An otm call only makes money if the underlying goes up significantly and no adverse movement in iv occurs! You guys should really read up on synthetics so you'll understand what your actual positions are...

There exists a relationship between volatility and time and it is as follows. An increase in iv has the same effect as an increase in time to expiry - thus 'synthetic time'. The reverse obviously also holds true, i.e if there is more time to expiry then that has the same effect as an increase...

Well, one can be 'partially right' with options and still make money, e.g. otm short call verticals. I don't think one can be partially right when buying stock and it just sits there or goes down. And the strategy doesn't have to be complicated. All one can conclude is that there are successful...

That's why it's called 'synthetic equivalent', the key word being equivalent'. As Wayne said, they can be managed identically and thus the collar has no advantage over the bull call/put equivalent vertical. db

I tend to agree. I had a look at his free 1 hr RD1 and RD3 video clips and it seems to me that one needs his diamonetrics grid and the excel dissector to get max value out of the course. However, one still needs to have a view on the market to decide what position to take albeit he shows you how...

If you sell an otm call against your long stock & long put (aka synthetic long call) you end up with a collar (aka bull call spread). If your strikes are the same you get a conversion (as MTE said) and your cost of carry (C of c) is the 'profit' you see on TOS (as mentioned by others). Look at...

Thanks for the feedback but what about his educational material - is it better/more useful than, say, Dan Sheridan? db

Thanks for the reply. I actually bought his book 'options trading:the hidden reality' and found it to be very good. I've also looked at the free downloads but am wondering if anyone has done the whole 'course' and their opinion in relation to it. Cheers db