Search results

That is my favorite strategy.

What they mean when they say this, is generally and overall - and without any edge - you can't overcome retail costs. This was recently said about gamma scalping. Obviously, if you can forecast SV vis-a-vis option pricing, then you can overcome costs and be reasonably profitable - but it's...

With Amer. style options the UL is assigned. The UL R/R is always superior to the short option (assuming no time value) Assignment risk with Amer. style is with increased margin reqs. and the corresponding margin call / auto-liquidation. Yes, cash settled early assignment effectively...

Heck, I move the entire stock market with piker trades. Thurs. I had a put position that would do well sideways or down. The rest is history. Since the big boys in New York constantly monitor my positions, they frabricate news in collusion with the Federal Government and it's buy, buy...

Yeah, I thought it was odd. And I didn't really like the choices either. You can eliminate 1&2. So, it boils down to 3&4. Since I use spreads for hedging I chose 4 rather too quickly - and was wrong! I think that the key is in the phrasing. "Can be used" vs. "Traders often employ"...

A smart solution would be to take out a loan that you can pay off from your income. I wouldn't count on trading profits to pay it off - sim trading and the real deal are two different animals. Every little set back would put you in crises and possibly affect your trading. Cut down...

LOL - remind me to never bet against you, but that thought had occurred to me, too. (uh-oh) I think that the point that atticus is making is that you can put on a high probability trade that makes a great looking return from time decay. But there is no edge to the trade, just high...

It seems to me that a high probability vertical could be constructed giving you an edge on the wager. No edge on the spread by itself.

Hmmm...OP has zero posts...but if he has zero posts he can't be OP...but he is OP because his post started this thread...gasp...since he is OP he can't have zero posts.... (smoke coming out of super computer known as donnap)

It's the former. For example, the 25 strike will become the 16.50 strike. Presumably, the stock price will also adjust down about 8.50.

There's nothing wrong with your numbers. Your downside BE is 3.70+costs. The only problem, assuming a standard contract, is that the IV for that option is about 240. If a Co. has Oct. contracts with that kind of IV, then something is expected that will cause a good deal of volatility...

Another good call.

Good trade, Atticus. I'm assuming that you're out or hedged by now.

Obviously, the % change will be different, because the option has a lower value than the UL. Generally, options with a delta of 1 have less liquidity than strikes close to ATM. Some have almost no liquidity. In terms of absolute change, based on last sale, the delta 1 option may trade...

She got the face lift. The dog got botox. That's actually a chihuahua:eek:

Only a spammer keeps talking. You guys just give yourselves away. You're either an expert or a newb in need of help from a scam service. Here, you're just playing. Who talks like this? A spammer.

If the call is exercised, and you have no offsetting position, you hold the stock Monday morning. Then, if the stock tanks, you lose.

Well good, because your title is a total insult - To DOGS!

Not my area of expertise, but for the sake of discussion. Wouldn't an overlooked 1099 make sense? They only see proceeds, not basis, so perhaps they give it a zero cost basis? There would be no quarterly tax due except on the net, which was likely a small part of the total.

He's got that backwards. Taking it seriously is how you learn to make money at it.