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I thought it was much easier to calculate :( The strategy was basically to take advantage of the really exceptional movement, because the stock at time 0 is quiet, the implicit volatility is low, but then some really important news appears (when market is open) and in 5min the stocks moves A...

But if we can trade options as fast as we want, then I don't understand how this strategy could fail, it does not make sense to have an strategy with 100% of success :/ Example: if I short the stock directly, I need to be on the right direction, I could even loose a lot of money if I'm wrong...

Yes that's actually my question, is particular for this type of trading not a generic strategy. So you say is not possible to trade options intraday (and moreover in 1 hour or 2)? Can you explain me why that doesn't work fine with Options? it will help me to understand it better I think because...

My question is more about how possible is to take advantage of situations like this with options. Because this occurs "really fast". The candles are 5min, and the strong volatility dissapear after 1 or 2 hours. Is possible to operate with options at this speed? I mean is possible to buy the...

This is the current price chart for CISCO in 5min candles: The fall was because Amazon said will probably sell network equipment. When we get news and movements like this (look at the first 5min candle, is huge compared to the others, and in volumen too), there is a really high chance to...

so you are trying to install a new Techinal vs Fundamental war :)

OK, so to resume is better to sell debt than stock, but is more risky, and sometimes more difficult to get that money from the bank. The main reason for my question was also to understand if the market is useful or just a gambling game, maybe is both...

But that theorem says in a real world is better to be levareged (selling debt): "This means that there are advantages for firms to be levered, since corporations can deduct interest payments. Therefore leverage lowers tax payments. Dividend payments are non-deductible" So again, why the...

Why you say that? sorry if it's a question too stupid for you, but I cannot understand why any owner will sell half or more of his company to the market if he know the company will profit much better in the future. Actually is easier to see my problem: If you have shares on Microsoft and you...

Yes, I understand that making the company public allow to sell shares and get quick money from it. But my point is, if the company needs money, why is choosing to sell shares instead of asking for a credit? With a credit you need to pay interest yes, but if you think your company will value...

hmm... yes maybe it's a way to have some quick money? because if the company is worth $1M maybe the annual return is $100K and selling 50% is a way to have 5 years instantly. But why is not better to ask for a credit to some bank for $500K instead of selling 50% of the company?

Why a company wants to be listed in some market (NASDAQ or anywhere) I'm having problems to understand this. I guess on the initial offer they could get some money in that way, because they have 100% and they can sell those shares. But if the owner of the company thinks the company will be more...