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I'm wondering when I sell options. What is actually making my account "balance" fluxuate? Is it the stock price itself or is it the price people are paying for contracts changes? Or is it vol. fluxuation???? As posted above the exact amount depends on your broker. Here is an example based on...

As a trade without other considerations its definitely a crap shoot. Your point that stock XYZ only every moved 2.4% is meaningless as you should really translate that into SD and relate the price of the straddle to the statistical average chance of it exceeding the priced in number of SDs. The...

Well it seems I have to eat my words as regards Amazon always disappointing as regards to profit. However my proposed trade worked best. Based on the option prices just now: C OCT27 1080 - purchased according OptionsOptionsOptions for $3.35 now $ 5.50 - up $ 1.15 My ratio trade (long 1050...

I dont disagree - just made a point that if I were as bullish as the OP that's what I would do. Personally I think Amazn will be stable or drop on earnings because of their investment programme which devours cash. Bezos is well known for saying he doesnt believe in profits so earnings are the...

https://tm3.cmlviz.com/index.php?share_key=s_0_20171025120304_pGWaBXxgr0nyuxNv

The risk profile is the same as when you are buying the shares. The additional risk is no different than any options trade. Because setting up a short put/long call can be done for small debit, zero or even credit and despite the margin requirement, its easy to over-dimension such a trade...

If I were that bullish on Amazon I would do a ratio trade: - buy 1 C OCT27 1050 for $ 9.50 - sell 3 C OCT27 1100 for $7.50 (3x2.50$) Net cost $2 - you are net profitable all the way up to $1116 Up to $1100 your return is better than either the C 27OCT 1050 or C 27OCT1080 due to lower cash...

From the Option strategist:

The ES option and ES future do not refer to the same size of contract. Hence the difference. The main reason for this is - as I recall that CBOE and other exchanges do not recognise reverse calendar spreads as standard trades. Hence the reduced margin requirements do not necessarily apply...

If you go to google finance you can have google finance place the dates you are interested in into the google calendar. The calendar itself can be exported to excel and you can work from there. Obviously this means you need to input which of the stocks you are interested in but that is a one off...

Liquidity on all MON options went to hell since beginning of August - results are due today and I am closing out after 30mn. Will try to aim for intrinsic+dividend and see where we get to. As I got 2$ to start with its not a disaster for the moment anyhow.

Just as an aside, I am not American, I am Dutch private investor and started trading on the then very novel EOE options exchange in Amsterdam around 1986. I trade frequently but am by no means a daytrader. As regards never getting assigned - well I dunno - I read about people getting assigned...

Thank you for answering and sorry if the background information overwhelmed the setting out of the real problem. I understand your answer of course - this would be the normal course of action. However in this case despite the fact that the call 117 is only a little ITM there is no way to...

As I am bullish on the take-over of MON by Bayer, earlier in the year I bought a synthetic stock. I have cashed in and moved things about a bit since that time but my current position is Long C JAN18 115 Short P JAN18 120 Because the fastest gains were in the decaying price of the put side (I...

Dont worry I always pay for my lunches - point is that deep ITM is like buying the shares at a discount and a 'safer' avenue than buying ATM or OTM. Its true the leverage effects is less but like you say there are benefits too.

Deep ITM doesn't have so much theta - or was that your point?

You have read different views - your question is very open ended. After all saying a stock will move a certain amount could be just the reason to open a straddle, strangle or Iron Condor. If you think it will go up a substantial amount a more bullish option set up would be good. The rule I was...

And the winner is... not VSAR. Phase III results are poor - after hours trading shows the stock down 80%. Luckily I sold a call ratio so am ahead a few bucks but my oh my - these results are brutal.

Put call parity was not violated - its not completely exact but close enough that you cant make any use of it.

https://www.barchart.com/stocks/quotes/VSAR/volatility-greeks Open interest is 17K on the OCT17 20$ call and OI of 8 and 5K respectively for the 30$ and 35$ calls. In puts the 15$ strike has 3K open interest.