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The higher the implied volatility, the more premium you take in for a short spread (vertical, iron condor, etc.) and the less risk. Stocks that move the least for EA's have low IV, generate kaka premium and any surprise will hammer you more because the cost of hedging is too great versus that...

I mentioned monthly only because if the stock doesn't offer weekly, that's your only choice. For earnings announcements, I'd hedge the current week with the following week, hoping that not only do you collect the IV contraction but there's some 2nd week salvage value as well? How much loss...

SA articles are good for information but don't assume that the authors are qualified analysts because they write a coherent article. Anyone can write and submit their opinion.

Good judgement comes from experience. Experience comes from bad judgement. :D

Consider exploring ways to sell inflated EA premium and hedging it with cheaper later week/month options.

1) Option price for stays very close to what you paid for them during the day that you bought them if price and implied volatility do not change much. Longer term options decay very little overnight (theta). Short term options decay much faster. 2) As for "out of the money options will go...

My guess is that if price moves enough, you'll have huge gains on your sarcasm straddle. ;)

I think that they misread your recommendation. Investors are saying bye, bye, bye today! :D

Perhaps the OP was trying to talk TSLA into it? :D

It's an approximation. Google for articles about it as well as POT calculators.

I think that you misunderstood what I wrote. For an ATM option, delta changes very little if other variables (other than price) change. Away from the money, the other variables come into play. Yabba gabba gamma doo :p

Call owners tend to sell before ex-div since they won't receive the dividend. If that selling drives the bid below parity, it sets up a discount arbitrage. I'd argue that anyone on the other side who sells their call below parity is a dummy because they could exercise and avoid the haircut.

The delta of an ATM option is barely affected by change in pricing variables. It's like a flat lining EKG. Da-dead at ~50. The delta of an option that is not ATM is obviously affected by underlying price change, but the passage of time and change in implied volatility also affects its value...

Last trade is meaningless with deep ITM LEAPs that trade by appointment. It could have occurred hours before current price. You won't collect a 10.26% ROI. Calls this deep ITM are highly likely to be assigned early due to arbs.

The cut off time for notification for equity options is 4:30 PM EST. I would guess that you did not notify IB before that time.

Pick up a copy of "Options as a Strategic Investment" by Lawrence G. McMillan. When you grasp what's in that, read "Option Volatility & Pricing: Advanced Trading Strategies and Techniques" by Sheldon Natenberg. Then, read them both again. After that, you MIGHT have a shot at succeeding with...

1) Yes, you could make another day trade on the second Monday but that would be the 3rd trade in the next rolling 5 day period (the first Monday trade drops off and now you have done trades on Thursday, Friday and Monday so you have to wait 2 days). 2) Yes, this would not be viewed as day...

Yes, you collect the premium but you have not earned the premium yet. If the underlying moves against you, you will LOSE money. The cash balance of your account increases by the amount of the premium received buy the short obligation reduces account value by the same amount until the price of...

Let's not get technical here. :D

As others have mentioned, there is no realized profit if a position is still open. You have to buy to close the option or it has to expire for realized gain.