Search results

Thanks.

That would be my preference too, but there are situations where the risk/reward ratios along with favorable success probabilities would be consistent with my trading plan by holding a position overnight. So in those cases, I would try to find the most economical method of insuring the plan's...

spindr0, the idea of a "zero cost collar" is appealing, but so far, due to the reasons you mentioned above, I haven't been able to find one that works. Then there is also the matter of limiting the upside potential of the underlying to consider too. All of this is hypothetical in an...

When an equity experiences an overnight gap down of 3% of it's previous day's close, do atm options with a 30 day expiration time generally experience a significant change in delta? Is a true zero cost collar a reality or a desirable goal?

I have a good understanding of option fundamentals, but a more limited understanding of combining options, and strategies. At the moment, I am reviewing Greek fundamentals along with basic strategies. When it comes to the practical solution of multivariate equations, I tend to use Excel in...

Spindr0, Elite Trader is one of the best resources available, so yes, the time and effort to post here certainly qualifies, and the opportunity to meet and converse with such an esoteric group is priceless.

Exactly my point about different names for the same thing in the world of options.

So back to draining the swamp. When using a collar to insure against an opening gap for a long equity position held overnight, how does one determine the optimum coverage for the least premium? For example, the equity was purchased at 50 and the current market is also 50 and the intent is...

In Greek Mythology, Piezoe is a lesser god but a god no less. :) ------- Avoid the temptation to Google "google". That will destroy the Internet. - Steve Martin

Based on a small sampling of the 40+ million hits from the google search, it certainly appears that vertical is the assumption as you indicated given that there were numerous references to diagonal collars and no mention of vertical collars. Were it not for the use of the term "vertical...

Are all collars vertical or can they be diagonal? If so, how do you specify which collar you are speaking of?

Spindr0, If I have peed in your face, then I certainly apologize.

Interesting choice of words. I fail to see an implication of indebtedness. No offense taken.

Spindr0, Thank you for the time and effort you put into assisting me in my quest to understand the meaning and construction of a "vertical collar". I hope someday I am able to assist you in the same manner. I'm off to do some serious reading about collars.

No one specifically asked you to respond. You made the choice to formulate your rhetorical answer and post it in response to your ego in the same manner you chose to resort to the unprofessional behavior of name calling.

"Vertical is redundant when talking about a collar" would have been much more helpful than rhetoric like "Google option + collar", and viewed by most as being closer aligned to the spirit and intent of this forum. Members of the forum are here to ask others who are more experienced and more...

The option side would be of interest for future reference if you have the time to spare.

Equity and Forex.

I'm trying to gain a better understanding of the financial markets from a market maker's perspective, details of how they operate, and methods and strategies they used to move the markets. Any suggestions on books, courses, or websites would be appreciated. I've done the Google thing, so I...

My primary concern is just holding the position overnight and closing it out the next day.