Search results

So enlighten me..... However, since I've traded options professionally for 30 years, and currently work as a Business Systems Analyst in the brokerage industry as a SME to support software development in margin, CPM, and complex options handling, I won't accept an explanation overflowing...

So if the model calculates a delta of .50 from a 1 point move and the underlying moves .80 on that 1 point move the true delta is .80, the new calculation based on the new underlying price would be a new delta, and the delta is in constant change, the Gamma allegedly makes that calculation...

I would of thought that it would be apparent on the charts that the calulated delta was on a daily basis as well as the true delta. (duh).

I expected none of the above. What I did expect was at least an attempt at intelligent responses. As for what was referred to as "true delta" was simply this. If the model stated the delta as 0.50 and in the real world the move was .80 then the True delta was 0.80 I was hoping that...

And that means exacly what...???

That's it!!! As some readers may know, I'm not a big believer in the usefulness of the "Greeks". Each time I comment on the short comings of the BSM Theoretical model I get a overabundance of debates to the contrary. Repliers tout the merits of negative and positive delta, IV and...

See the attached file for comment

Your right...it can't be.

Every day the market makers make money on the spread.

What I'm saying is that the Greeks are base on a theoretical model and thus have little if anything to do with the real world.

You stated "...get the sum of all the greeks,...."

The greeks are calculated based on a theoretical model.........The greeks are calculated based on a theoretical model......... all together now. The greeks are BASED ON A THEORETICAL model.

One big misconceptions (Example above) is that Condors are always Iron Condors for credit. There are: Long Condor Call Spread Short Condor Call Spread Long Condor Put Spread Short Condor Put Spread Long and Short Iron Condors Some are neutral to bullish or bearish, some depend on...

I agree with rew. The brokerage industry is highly regulated. The broker is required to perform due diligence for customer suitability when it comes to options. I have seen too many customers allowed to trade in complex options strategies and then the customer complains since they lost...

I would have to say right now the market is over bought based on the 10 day vs. the 50 day moving average of the TRIN. I do not see any reason for early assignment like a div. For me when I do a CC and want to keep the stock for more up-side I do a roll-up and out. I looked at the...

Leverage auh.... Hmm lets see....If one started out with just $2,000 and made 60% per month...compounded.....in just 5 years that would work out to: $3.5 Quadrillion.......mmm... at a 38% short term tax rate, the national debt would be wiped out. go for it...!

That's "Potential" profit.

I'd Have to say somewhat interesting but for the most part like all the greeks "useless" (I'm sure I'll get some flack for that)

What's your problem, the stock will be reduced ex-distribution as well!!!

The exdistribution date for this distribution will be Sept. 9, 2010 Strike prices will be reduced by 8.50