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I'm no expert but from the delta neutral trading I've done (on the retail level), it comes down to your ability to hedge as well as a cooperative underlying. Timing is everything. Luck doesn't hurt either.

You've gotta have a set of stones to pay 90+ vols for a straddle that's on the way to 50 with the EA. You're a better man than I am, Gunga Din.

Good for you. You found some web sites that also misuse IV as intrinsic value. One of your links is to an article written by Patrick Curtis of the Wall Street Oasis Editorial Board. Click article's link: "Return to Financial Dictionary". Then click on their list of terms that begin with the...

There is no 'other IV'. Everyone interprets IV to mean implied volatility.

There's nothing in the details that the OP provided that suggests that there has been any change in implied volatility. Maybe it has, maybe it hasn't, but it's unknown. You had it right in your previous answer: "Intrinsic value has increased faster that the time value decreased because I...

If a bear attacks, all you have to be able to do is outrun the person you're 'outdooring' with :->)

I'd echo your sentiments. I have a fellow trader friend who listens to tastytrade every day and follows many of their recommendations. He informs me of the positions (recommended and taken) and AFAIC, they take on too much concentrated unhedged risk. I don't have a problem with risk but...

I've tried several ways to monitor delta along the way without having a clue if what I was doing had merit or was worthless: (1) I just summed the deltas of all options (ABX and NEM) (2) I divided the delta of the ABX options by two, only because the price of ABX was 1/2 that of NEM and then...

As I understand it, with underlying at the strike, Put + Carry = Call + Div So if there's a pending dividend, it increases the put's premium, relative to the same series call. And if the interest rate rises, it increases the call's premium relative to the same series put. But with a...

And the day before, it was only 501+ pct at IBKR :->) TILRAY|326196509|XXXXXXXT1007|-498.7064|501.1064|10000|

The break even point is in the future and has nothing to do with this. Your profit is the option's current price less what you paid for it. If you paid $5.35 for it and IB indicates that you have a $23 profit then their midpoint valuation should be $5.58, ignoring about $1 paid for the call...

I did a lot of equity pairs trading in 2008 and 2009 when it was a no brainer, providing outsized returns due to volatility. Since then, not the easy buck that it was. Probably due to old habits, once in awhile I dive back in. For example, before the merger, I occasionally traded ABX long...

I feel the same way sometimes. I've read a few option books and I have been utilizing options on a retail level for over 30 years and yet, some of the discussions here make me realize how little I know. The flip side of that coin is that 30 years ago I was stumbling in the dark, trying to...

This isn't a challenge but a curiosity. If I'm hitting the bid or the ask, how am I going to get raped? Shouldn't IB be routing me to NBBO even if I'm on Lite? Or will it exile me to the hinterlands where liquidity is an issue? TIA

In the context of the OP who's asking if buying a put equates to short selling, it's an appropriate answer. What I should have specified was 'at expiration'. The downside profit (share price drops) of a long put at expiration is the same short stock less the premium paid. If you want to...

It's a very insightful explanation of hedging when you own the underlying. If you don't own the underlying then the long put has the equivalent downside performance of shorting the underlying (underlying's price drops), less the premium paid for the put but without the so called 'unlimited...

The margin requirement for a short strangle is the larger margin amount of either side plus the premium from the other side. Broker can ask for more. With naked positions, trade small because tail risk is a bitch. A margin consideration alternative might be selling an Iron Condor. The long...

Anything done with the same underlying would be a wash sale. In both cases, there would be overnight market risk from closing one leg in December and then the other in January. Hedging the January leg with another ETF when closing December might be appropriate (restore the pair).

Contact the CBOE. They've always been helpful when I have done so.

Yes, the dividend is already priced in, which is what I stated in my original question. So both of you answering with what I have already stated isn't an answer. I'm looking for some nuance as to the hierarchy of premium adjustment in regard to potential option position adjustments. So even...