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i thought it is shorting an option... and you can think of it as writing an option... but maybe im wrong.

so it's good to become a statistic!

i heard someone on this board trade AMZN options for a "sweet sweet gain"...

covered calls! :p

are you telling me I can watch options action, check out their trades, watch the IV and short it?

thank you all for the info I think for me, who at least for now doesn't want to worry about margin calls and naked positions, the short calendar works best. Thanks Mark, I didn't even think of that. All of this is paper trade for now while I figure this stuff out.

I was going through some simulated transactions for short vega positions. I tried a short straddle and long butterfly, simulated underlying movement and tried to stay delta neutral. What I've found is this forces me to -buy high/sell low -sell low/buy high If I wanted to do a vol...

I checked that before selecting the month. What I did, was avoid the front month and bought a few months ahead. I paid more in absolute dollars, but didn't over pay for the option. That way, if the underlying stayed flat, my only risks were slippage and commissions. Of course to the...

yup! He does. But any basic options book should cover that as well

I was going to start a new thread but I'll keep it in this one. I think i must be dense, but I'm having a hard time understanding the practical applications of the "hedge bands". Lets say I'm forecasting a rise in Vol for the underlying. I am then long a straddle, and at the current price...

I'm happy you asked... There is a member here that wrote a book for rookies, his name is Mark. I personally have not read it, so others who have are free to comment on it. The Rookie's Guide to Options: The Beginner's Handbook of Trading Equity Options by Mark D. Wolfinger I...

maybe someone with more experience can shed some light. some members here prefer to trade direction with the underlying, others will use options it depends how much you're willing to risk, and how you protect yourself if it goes the other way. There is no right answer. if you're...

exactly... that's what I did personally. But i'm following the stock, fundamentally. So it was my opinion, though long term I want to hold this stock, that short term the conference call would generate some news that the market would react to unfavourably. If the underlying stayed flat...

i've hedged with puts before earnings, i want to be long the stock (long term) short term, i thought market would punish the underlying. I don't know about others though...

you mean not on margin? isn't that really really risky?

is it possible that someone may be using the delta value as a hedge?

awesome, this is helpful ^ thanks jw I suppose nothing is simple... I'll take a look at this as well, this game gets more and more complex the more I learn :). happy holidays to you all!

thanks, I do understand what he's talking about, but I thought vol trading involved being long or short vega through volatility strategies. I didn't realize it was locking in a profit by hedging a position over and over again until vol rises or falls to the projected amount. anyways...

i thought trading direction was hard :confused: so vol is even worse?

so if the underlying is going to sit there, vol won't change? btw thank you all, i really appreciate the information, it's helpful