Search results

At a $60 credit, I see the math as (-240)*.0908 + 60*.8122 + (-90)*.097 = -21.79 + 48.73 - 8.73 = 18.21 which is an expected profit, as opposed to an expected loss at a $40 credit. I'd calculate the return as 18.21/240 = 7.59% (or roughly 13% annualized). (Apologies if you've already...

Why only a $40 credit? optionsXpress is reporting NBBO of $0.35/$0.85. In my experience, they usually fill pretty close to the middle ($60). This obviously raises the expected profit.

Can you clarify? Let's say you're bullish on the underlying -- and you're right. You're up 10% but you think the trade has run out of steam. You don't take profits but wait until your original stop is taken out? That can't be what you're saying.

You really need to chill. We get it -- you don't like spreads. What works for you and what makes sense for you doesn't necessarily match other perspectives. Saying the short option isn't "worth it" essentially says that everyone has the same risk/reward tolerance, and that's just not true...

Just because the options are DITM/DOTM doesn't mean there shouldn't be time premium, though. I wouldn't necessarily call those B/A spreads wide, but even if we assume FV is somewhere in the middle of each spread, there is hardly any difference between the values from front month to over a half...

The theoretical value of the call probably did go up, although vega could have bit you. It also could be a case where your broker is just reporting the bid as the value and you're not seeing the (hidden) increase if it happened.

That website is calling MIL "Millipore Corporation", which MIL is most certainly not. I'm not saying the quotes are bad, but MIL is MFC Industrial, a commodity supply chain business, not a bioscience business.

Ticker MIL MFC Industrial, LTD. Commodities, etc. I don't care if you check it out -- buy away!

If you're bullish, why not just buy ITM calls?

I don't think it's a takeover target. There certainly isn't anything out there on the retail sites. (That might not mean much.) For what it's worth, the ATM strikes price higher in a predictable way as you go out in time. The ITM puts ($10) are similarly flat, like the ITM calls. I didn't...

No comments? Isn't it unusual for an option chain to show essentially zero theta? That's how I'm reading it.

$5 options on a $7.75 underlying: Jun14: Call $2.60/$2.80, Put $0.00/$0.15 Jul14: Call $2.60/$2.85, Put $0.00/$0.25 Oct14: Call $2.65/$2.90, Put $0.00/$0.05 Jan15: Call $2.65/$2.90, Put $0.00/$0.25 What is the implication of essentially no extrinsic value across multiple expiries...

It's not like there aren't dozens of similar threads on this forum, right?

I don't think a single instance where the underlying closes above both strikes on a vertical proves anything. The vertical reduces breakeven, changes the whole structure, etc. Sure, shorting the upper leg cut his profit this month. What does it do over time?

Thanks. What tells us that calls are cheap (and should be bought) rather than sold? Similar question for puts?

I'm curious to hear more about a low-cost collar and why it's a "bad idea" in this instance, given the OP's view on the stock. Say he sells the Aug $60 call and buys the Aug $46 put for essentially a wash. Yes, he is capped on the upside but he also has some downside protection, and certainly...

No, the best thing you can do is to sell above the theo value. I suppose "theoretical" is only as good as the model and the inputs, but I routinely see my broker's theo value come in above the ask or below the bid, and trading continues as if (a) nobody knew better or (b) my broker's calc is...

I'd love to see whatever you are referring to. Not a whole lot of price action looks to me to be signal related in the sense that one could predict from past activity, but I'm always willing to learn. Nyquist should only come into play as a minimum sampling frequency required to get good...

I sure hope not.

Gonna have to run that one by my wife.