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Listen chief. It's obvious this board is full of beginners (I used Arnie as an extreme example) who are totally clueless and think they can get away trading options without much understanding. And it's also obvious that a number of posters (who should know better) on this site agree with that...

Not very nice. So you think my example is not a good one to illustrate the point of understanding greeks? Unfortunately now you come across as an arrogant smart ass prick. daddy's boy

Hey riskarb - chill. Post wasn't meant to get at you, just pointing out to other posters the idiocy of their statements and using your post as an example of someone using greeks. As you know (or maybe not) I'm big fan of your posts and obviously you understand your greeks back to front. Best...

I just thought of a better example. A trader (let's say his name is Arnie) goes long a sraight call. The underlying moves up and at same time iv collapses and time decays. Trader thus loses money and wonders why. Answer: lack of understanding of the greeks. Daddy's boy

Funny thread this one. Surely you people aren't suggesting trading without knowledge of the greeks. You may think you don't use greeks, but whenever you place a trade you are looking at volatility, time, delta, gamma and choose your option/strategy based on these. So you may not consciously be...

Sure it can be avoided. Simply get everyone to take off all their clothes, put on a hospital gown, board the plane and then handcuff them to the seats and only let them use the bathroom with a supervised escort. It's a little labour intensive but a small price to pay for extra safety and peace...

Get rich quick by trading options? You won't. But there's always the casino. daddy's boy

I think the definition of r/r (reward to risk) is as follows: max potential reward ($4500 per contract if stock goes to zero)divided by max risk (4500/75=90000%), i.e a very large number. Iow the r/r is superb and is, by your own definition, a low risk trade. The probability of it occuring, of...

Oops! :( Thanks mmts. daddy's boy

Thanks for explaining PPS. I just saw that it's also a stock symbol. Best daddy's boy

That was helpful! :mad: daddy's boy

I've been following this thread but have been too frightened to ask as it may sound a bit stupid, but what is "PPS" - as in "significant impact on the PPS in either direction"? daddy's boy

I assume you want to play the bullish side, just as if you were long stock. In that case, and considering that you "rarely do options", the safest way to express your bullish tendencies is to place (buy) a bull call spread (buy the lower strike and sell the higher, same month expiry - which...

Nicely put. daddy's boy

Hi Just use a pricing model to see what move in the underlying is necessary to make the profit you want in the time frame you chose. Choosing a spread over the outright option somewhat neutralises your vega risk, albeit at a cost. Best daddy's boy

Never thought of these. Thanks mysticman, I'll check out the swb's. best daddy's boy

I'm a fairly simple sort of chap so I try and keep things plain. I see bwb's as low risk otm bets that need careful strike selection (the most tricky part of the whole selection process), I only do them on indices (preferably for a credit/even or very small debit), with no more than 5 to 6 weeks...

Sorry eliot, can't comment on strangles/straddles - haven't done enough of them to really know what I'm doing, lol. I generally confine my commentary to strategies I feel I have done enough of to get a feel for them - straight calls/puts, debit/credit verticals, calendars/diag time spreads...

I see - I didn't realise he'd sold his stock. Best daddy's boy

All I can say is massive negative gamma play and leave it at that. Daddy's boy