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To keep it simple without all the math, a simple put often would be better in a max gain scenario, but what about other times? Instead of using formulas, just look at a simple example - XYZ at $50 50 put - $400 45 put - $200 Buy 50 put - $400 - max value = $5000 = $4600 gain and 12.5...

Is this prediction similar to the one how the U.S. was supposed to be facing like 2,000,000 percent inflation over the last few months? JJacksET4

I don't know that I would call that a big credit spread - just a large number of a small spread :) I assume you are quite bearish on GE then? Looking at the quotes, it appears you probably got about 17-20 cents maybe per spread? Do you have any stop area in mind if GE moves up? And if GE...

TM, I feel like what Spin said is correct. If you are saying that you think 60 is a fair volatility, you just plug that into a pricing model and get the price then for a given call or put. As far as figuring about a fair volatility, you said you are already aware of how to do that. The...

I agree with what the others are saying, plus I would add that there is even more risk then what you are thinking. If the stock gapped tremendously, you could find yourself in a situation where you are forced to close the position. For example, while it would be very unlikely, if the stock...

From the article: " Aside from that, criticism has focused on the following: That the HPI completely ignores issues like political freedom, human rights and labor rights.[8] .... General suspicion of subjective measures of well-being.[9] " Completely ignores .... political freedom...

Spin, I agree with Mark and with you - he was starting with an unrealistic assumption that was meant to be fictional, yet he used real symbols, which like you say would have been better with XYZ, ABC, etc. I assumed AAPL and ORCL to be basically fictional for the purposes of this thread...

First of all, I don't think you will ever find a correlation between 2 stocks prices that always works exactly (other then Ultra EFTs vs. ETF, etc). but here are my thoughts. For simplicity, pretend AAPL and ORCL were each $50. The problem even if you know that ORCL will move 2X what AAPL...

Here are my answers: 1. A 2. C (or B - see explaination) 3. C 4. C (A could be considered - see explaination) I realized after reviewing these that 2 of them might not be crystal clear. Questions 2 and 4 are really C, but if someone answered them as B and A respectively I could...

A couple of quick comments: 1. I agree that short puts have the same risk profile as Covered Calls and I have nothing against them. 2. IF a person already owns a stock with no options, adding a covered call to that is obviously not the same as now just adding a short put to go along with...

Not really - I just type quickly :) JJacksET4

I made this "Simple options IV test" to see how much confusion there really is over what IV is. I have been concerned about what seom people seem to think IV really is. Please read the questions and give me your answers - they are simple multiple choice questions and I think they are all...

dmo, First you said that IV was only demand. You said "IV is demand. It is nothing else." Now, you say it is supply and demand. Of course, that makes a big difference. Still, I wouldn't agree if demand is viewed as far as how many people want something. If demand is viewed in terms of...

dmo, I am very familiar with "what" IV "is" and how to use it, etc. Of course, I understand what you are saying, but I look at demand differently. For example, an expensive, volatile stock might have a high IV, yet the demand for options for the stock could be quite low - not to say there is...

I agree that it is LEAPS and should be typed as such, but what do you expect from average people when you consider we have a: - President of the country who has no experience running anything. - A Vice President who shoots hit mouth off angering just about every group in one way or...

Wow, that might have been one really expensive summer camp, especially if the cards really were in good condition. At one point in my life, I had so many cards I don't think my mom could have phsyically thrown then all away! Literally, I probably had some 6 figures of cards - I had many...

If that was before the 80s especially, for your sake, I hope you kept them and kept them in pristine condition lol. I was just a bit too young to have bought cards from the store that would be worth a fortune now (I collected in the early/mid and some late 80s) JJacksET4

Yeah, like none.