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so....a straddle?

like some others said, the gamma risk is too high for me unless i'm buying OTM singles or narrow spreads and making a quick bet. with individual stocks especially it's too easy for the underlying to blow past your strikes and making rolling out or adjusting impossible as the remaining extrinsic...

if you're unwilling to share your super secret trade the only answer is "figure it out with your broker."

two things come to mind: 1) your broker isn't shaking you down. if you think you're going to point-and-click your way through making two sided markets, use your spare hand to spread your cheeks. they're honestly doing a favor. 2) why on earth do you think you'd be improving market efficiency...

yes, you'd be buying to cover the shares you're short.

there is an abundance of very recent threads that address each of your questions. apart from that, your broker will be able to answer them in a more specific way. if you haven't picked a broker yet, there's plenty of recent threads on that too. poke around the first 3 or so pages of threads and...

do you ever contribute anything of worth here or just the drool that pokes out of the side of your mouth when you forget to take your seroquel?

This isn't a video game where gold veins lie right next to oil deposits. Pick any miner and you should be able to pull geological surveys of land they own...you'll have a hard time finding any with oil on them.

you could try turning it into a put fly or put condor by selling a put spread of equal width at or below it (e.g. 3100/3000 put spread into 3100/3000/3900 fly or 3100/3000/2700/2600 condor). Doing so will lock in some profits but will change your risk profile and turn it into an entirely...

I suppose if you're not worried about the value of the option changing between now and when the index settles -- which varies across products -- and your exercise fee (if any) is less than the transaction fee of selling the option then it probably doesn't matter much. If you're talking about a...

my point is that there's one of these threads every month or two and the answers tend to be the same. you'd get help faster by crawling the search than waiting for replies in a new thread.

the search bar

MBI is trading right wrapped around $10 with the Oct 11 call showing a delta of ~0.1 (data from yesterday's close) never say never

get a better broker

I was just pointing out that it's a risk but a very infrequent one if you manage your trades well enough (which I did not, twice)

It's still a risk in the sense that it's something to consider when you're specifically targeting selling ITM options. It's happened to me twice in four years, and if I'd been a better trader that number would be zero.

Hedging vega isn't easy at the retail level. If you want as close to a strictly directional position as possible, trade the underlying or very DITM options. Trading the future will offer that tasty leverage as well.

Selling ITM opens you up to more exercise risk and is imo is a very poor alternative to simply trading the underlying. You're capping your upside without an attractive benefit to match, unless you're the one behind the bid. Not to mention if you're playing price trend shifts as your post...

Those are day-step payoff diagrams. Across the top you should have a toolbar that is (L->R) Symbol, Commission Include/Exclude, Lines: XXX, Step: XX, Metric, Prob Mode, etc Change "Lines:" to "+1 @ Expiration" and the step should N/A out. This will leave you with the current P/L line (purple)...

Outstanding contribution, thank you. Eat shit.