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If anything, price behavior of far OTM calls will be muted since they are low delta. With no change in rate and dividend and knowing the amount of time that elapsed and underlying price change, the only thing left is volatility. Brokers provide that info. There are loads of option...

As I previously mentioned, look at the vols. The answer is there somewhere. Come out, come out, wherever you are!

Hmmm, I still see all of his posts on this chain and you don't? There is nothing wrong with your internet connection. Do not attempt to adjust the screen. We are controlling transmission. If we wish to make it larger, we will bring up the resolution. If we wish to make it softer, we will...

Great clip and one of his better movies.

Near the money options tend to have higher open interest... well, at least until price moves ;->) The size of open interest doesn't tell you much. For example, suppose your 3240 OI is the ATM put. Was it a bearish buyer of the put or was it a bullish buyer of the underlying who is hedging...

The tax implications are problematic since it's 6 figures of gain and any withdrawals are LIFO. Probably TMI but there are many 1035 swap choices out there. So far, I've found: A 5 year fixed pays 2.65%. A 10% "buffered" variable provides a annual 10% cap on market profits with 10% no...

Nah, that's too sophisticated for me. I prefer blunt force trauma.

Is this another "can't miss opportunity" like 8-track tapes ????????

Yes, that is a problem since a no cost collar might have to be -9% / +5% or if balanced (-5% / +5%), for a decent debit cost. I would assume that all broad based ETFs follow this pattern. Yes? No free lunches anywhere? :rolleyes:

Yep, you got it. I want to put a floor under the gains (nearly a double at this point) but have the opportunity to participate to the upside, even if it's not at 100% (possible collar loss). With a little luck, the upside participation will continue since I doubt that we'll have many years of...

That's a hindsight conclusion. If the news was not unexpected then it was priced in and something specific in the release precipitated the large rise. Have you ever seen an earnings announcement where the company was expected to beat earnings, they did and share price got clobbered? It's...

I'm not worried about the vols at all. I doubt that it will affect me to the upside and it can only help on the downside since the long put is throwaway money funded by OPM. I would have no problem with this collared VA rising 5% quickly and having to shell out 30% of the gain in return for...

No system accounts for unexpected news :D

That's true but I covered that scenario up above. If I sell a 20 delta call 5% OTM, I might lose approximately 30% of the gain if the rally occurs very soon. It could be more if vols expand but that's not likely to be much on a rally. Vols expanding would is more apt to occur in a correction...

I'm not a fan of rolling ITM covered calls up, booking a loss and carrying a paper gain. The market has a perverse way of making you pay for this. So the time to take action when defending is when the underlying approaches the short strike. If you roll a call up, giving you further upside...

Sorry, I wasn't thinking of ITM trading at parity. Didn't make that clear. For options with time premium, say ATM, will that occur?

Is it time to mortgage the farm and go all in ??? :D

Chances are, you might have gotten a fill on the Feb $15 call for 5 cents under parity. IB had shares available this week. However, I get a better deal from my bookie than what they want for borrowing it.

If hard to borrow with high borrow cost results in a higher put premium then does than mean that the calls will drop in price as a put/call parity offset?

OK, my bad. Now I understand that part of the question. I don't know where IB gets the shares. Perhaps it's a just a book entry? Perhaps they are lending you shares overnight at no borrow cost as a service because they will get the shares by the morning from the counter party? I dunno...