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without doing the exact math. just looking now at an option chain i can sell a 138.75 call on apple that expires this week that will net around 30 cents and buy the 144 or whatever i choose for 10 ents or less.

do you mean that if i buy it now there can be a drastic change in the vega tommorow, or do you mean that the farther out i go the higher the vega is, meaning the closesr to expiration it gets the faster it will decrease in price because the vega is decreasing?

as i said i will always also be long a weekly call, albeit, farther otm.

the leaps put have a delta of a drop less then 4. so if the stock goes up i am gaining twice as fast then i am losing.

i have two replies to your comment. 1. that the market goes up gradually so even if the market goes up 4 percent, most weeks since i am selling weekly calls (assuming they expire worthless) i can sell another call. in other words my downside is set but my upside keeps on getting adjusted...

i think you misunderstood me. it could be i wass unclear. the plan is to buy 100 shares of apple. then purchase a leaps put ( the spread on the put can't be to wide). i will then sell weekly calls in order to pay off the put. for example if i buy the january 2023 put with 130 strike it will...

can someone tell me the drawbacks to the following very elementary strategy. buy 100 shares of apple. buy atm or a little otm put with far out expiration, for example the january 2023 130 put which is trading for around 20 (which is really 2 grand) dollars. and sell weekly or whatever you...

i know this was probably discussed here many times but please bear with me and help me understand. right now i do not currently day trade. before i possibly embark on such a hard journey i want to clarrify exactly what happens if i only trade one stock such as the spy and after 100 trades in one...

i see that some professional traders judge the strength of the market by looking at the majority of the stocks if they are following the index. i was wondering where would i get this information everyday? is this a listed indicator on the etrade or fidelity platform?

can you kindly elaborate?

i am looking at different securities that have extraordinary high option volume. is there a way that i can tell if they were bought because they are long that position or if it is just to hedge a current position?

i have 3 basic questions regarding implied volatility. 1, why is it that the farther otm you go the bigger the imp v is? 2, when i pull up an options chain of lets pick apple. the expiration is april 1. when looking at the deep itm strike of 60 which has a delta of close to one, the imp v is...

can someone please explain to me why when there is a rise in inflation it has a negative effect on the stock market?

i have never studied this pattern before. is bac setting up to form a cup and handle breakout?

in this strategy that you are mentioning there is one naked short option?

so you are saying that i good way to set up what i want to do is instead of selling and buying with the same strike, the short should be at least a little higher then the long?

if i buy a stock of 2 different companies at 10 dollars. 1 goes up to 20 and the other goes down to zero. i then close both positions out. do they cancel each other out and i wouldn't owe any taxes, or do i owe for the gain and i would only be able to deduct from the loss up to 3 grand?

thanks for responding. my question is if let's say i am short a front month 405 strike and long a back month 405 strike. then the stock shoots up to 500 before the front month expiration, the best thing for me to do would be to roll up the long in order to pay to close the short?

so say before the short call expires, the index goes up. what would be the most common thing to do? roll out the short and roll up the long to cover the cost of the short?

the point of what i am trying to accomplish is to sell a couple of shorter term options to cover the cost of the long option so that eventually if everything goes as planned the longer term option will be paid for and then i can then let it run. can someone detail me why yes or not this would work?