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curious - how did you get into the position? did you buy the puts when you bought the stock? not a bad call, capturing that decline. was this an earnings play? or entirely something you've had for a while?

I'd take the loss and move on. Thats a long time for the moving target to move. What happens if the feds raise rates a few times, and instead of 'soft landing' reports, we see some more drastic movements ? Furthermore, with fed funds rate likely going up, it seems inevitable to think there...

Fundamentally, if the underlying moves in the right direction or to the right amount, and vega and theta don't fight you, you're in the black. Nothing to it. But there are still a few rules to follow, tricks of the trade from experience, to get around losing some extra to the market makers...

ha.. it looks like the owner is trying to sell a covered call on their house. That lease premium is way to expensive. Not anywhere near fair market value.

You're right as well. If you read my post about losing my ass recently in options, it makes a good point. Somehow in the options books and tutorials I've read, there was never a rule like this: 1. NEVER put market orders in for option buy and sells, unless of course you are willing to lose...

I agree with that. protective puts, protective calls (for short sales), and covered calls - all good hedge positions. Or even better hedge after a runup... bear spread (sell covered call, buy put).

but with buying puts and calls, you lose at most what you put in. With futures, you're downside is potentially much deeper (all the way to 0) (thus requiring stop orders if you don't have the stomach to gamble riding out a drop).

of course, the allure is leverage. It takes 20x the capital to work with underlying securities compared to options to get the same price movement relative to a shallow in the money call. so compare margin interest going long to volatility, theta, and rho.

So reiterating your point, more open limit orders encourages higher liquidity ... makes sense, especially on lower volume options. But what about options on stocks that barely move, but have high option trading volumes to offset that liquidity issue, ie CSCO? I imagine if you could trade...

Why in this modern day are there such ridiculous intervals in the option market? I know why, obviously - it benefits the market makers. I just figure perhaps the client trading community would push for reform in some sense. Its either that, .5 intervals at cheap stuff, or .10 deep in the...

better question -- while energy prices have risen across the board, natural gas is still relatively low. Does natural gas's current price per BTU (its in a 1:10 ratio right now to oil, while it actually is 1:6 in energy content to crude) reflect the true price of oil? Or is it all inflated due...

I concur - but I'll go a step further and say specifically I think energy sources (ie oil/uranium), as long as there are supply limitations, will reign supreme, not gold/silver/etc. (in the long term at least) Whatever has a practical use will do well. Gold has very little practical...

I think we mean the same thing, ie: a. oil is $70. USD goes down 10% in relation to Euro. b. oil corrects to $77 as USD is worth less. so: c. Euro holders are not paying any more for oil as a result. Since US and Chinese currencies as well as economies are so closely linked, if there...

Makes me think about it from another perspective. If the dollar tanks another 10%, oil can still go up another 10% and the EU will still be paying the same net cost for oil. So I assume EU is betting on exactly this occuring.

thats certainly true. Its fascinating to see how international markets were so hurt by general inflation prospects. Its easy to see everyone is raising rates because energy prices are adding inflationary pressures everywhere. In fact, I wonder if its been studied how much impact feds'...

ha. give em a break, they didn't have computers back then to run more thorough analysis. On the other hand, isn't it amazing that such a large part of the world of physics is still based off the fundamentals of Einsteins work in the same period, of course, without the aid of computers ??

I'm new to the forums. Welcome me; I've been long obsessed with what seems an inevitable devaluation of the US dollar as the world goes towards more equilibrium as far as wealth is distributed. I'm really fascinated what would happen to the US dollar if crude oil transactions switched...

I'm new to this forum, but enjoying all of the debate. If you've held on to your position, as of today, you are slightly ahead. Are you still in? Or where did you exit? Why the short straddle in combination with a long straddle in a 'calendar spread' fashion? It seems like a good bet...