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You are new to options and yet you have a position across 7 strikes and two expiries!? The best way to manage it would be based on net greeks.

It's your shit, you clean it up!:D

There's no FOMC meeting today. It's just the notes release from May 10 meeting.

The stockmarket is correlated, and in selloffs like this everything has a correlation of 1.

Depends on who you ask. Seriously!

I don't know if you're doing this on purpose or you're just so dumb that you do not understand the point I was trying to make. You said: So once again, the money is not in your pocket. Unless you can buy that option back for less than what you sold it for you got ZERO profit. You're still...

That's what I said in my post, either underlying moving your way or time passing by. Next time read the posts more carefully! Time passing by is still equal to position moving in you favor, i.e. the option decreasing in price.

OK, let's put it this way, the money is in your pocket, but unless the underlying moves your way or time passes by it's not yours to keep. IOW, you don't make a profit until the position moves in your favour.

Yes, I knew that. That wasn't the point.

Yes, that is correct, in your case you can't use futures as you would overhedge. I was just pointing out the simplicity of futures.

Money is not in your pocket. It's a fallacy to think so, because if you were to sell an option and then turn around right away and buy it back you wouldn't make a cent.

"Options trading: the hidden reality" by Cottle.

If your account is 40K then you have 40K deltas and need an option position with -40K deltas. It doesn't necessarily have to be an option with 0.4 delta, you can have whatever option you like as long as the total option position delta is 40K. Delta-hedging can get expensive though as you...

SPAN margining, i.e. risk-based margining, is the main advantage of options on futures as opposed to index/equity options, which are rule-based margining. By the way, options on futures are vanilla as well.:)

Hey, don't get all angry! I'm not the one buying.

Already bailing out, huh!? Very disappointed in you!:D

OK, make it quick though!:D

I'm with ya!:cool:

A quick rundown. Pos. Delta - means that you position will gain $70 for every $1 rise in the stock price. Pos. Gamma - for every $1 rise in stock price your delta will fall by 16. Pos. Theta - holding everything else constant, you will gain $12 with each day in time decay. Pos. Vega - for...

To be more precise, some charting packages only display the data that they acquire while they are running, so if you were to, say, run the application only at around midday then you won't be able to see a chart for the first 2.5 hours (assume we are talking about stocks and New York time)...