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If memory serves me, Wilder compares today's High and Low to yesterday's close and also calculates today's H-L difference. He then takes an EMA of the highest of the 3 measurements. As mentioned by OP's, IV is a forward looking expectation of stock price behavior. FWIW, I think that...

It might help to know that the synthetic of a collar is a vertical spread. So if you leg in and can net a credit equal to the difference in strikes, it's riskless.

With the NP, you have up to 2 fewer commissions (2 if it expires, 1 if you have to close it). Plus, you don't have to fight 2 B/A spreads going in and out (stock and call) and if your platform doesn't provide a synthetic put order feature, the CC will require you to leg out if you need to...

LOL. I think that Richard was suggesting that from a risk/reward potential, the Apr 10/2.5 vertical spread was a better bet than the covered call.

You can find historical option quotes at : http://stockmarket.businessweek.com/stocks/quote.html Unfortunately, they changed data providers 2 months ago and it's not what it used to be. And, the new procedure for getting the quotes takes more clicks :( If the option didn't trade...

One would trade wherever the best price was. Hopefully, your broker or platform has Smart Routing and would send your order there to obtain the best execution.

The last news that I read said that the company expected to present the results no sooner than late in the first quarter and was hoping to present results at the American Cardiology Conference which begins Mar 20-something. That's after Mar expiration... hence the reason for the current IV...

It will cost you approx. $8 to buy that strangle. If AGIX's implied volatility (IV) drops (before exp) to its historic avg of .50 upon release of the news, AGIX will have to drop below $2 for you to break even. On an expiration basis, AGIX will have to go to MINUS 50 cts for you to be even...

You want the far month to be inflated above historical as well, otherwise there isn't a lot of profit potential. A key component is your guesstimation of where the post release IV is going to contract to. Bloated issues like NTRI are good candidates. I did a double ratioed reverse calndar...

You need a big move for this to work. The IV crush is usually not enough. And it's a strategy for close to expiration. Look for IV Trader's topic about this.

>> This is exactly what i did for ISRG (115/90) except the ratio was 1:1. Looking ahead though it seems like a good approach to ratio one side higher for ISRG and MA types. << I'd say yes to that if you had a directional bias. If you didn't, ratio writing both sides gives you a little...

If you're a long term investor, there's nothing wrong with pocketing the gain on the call write... other than the stock keeps going down. But then you're back to buy and hold which is where you were in the first place. If you're a trader, as someone suggested, trading the stock intraday...

With skew issues, I often redundantly (g) ratio the OTM calendar on both sides. Usually 3:2 but sometimes 2:1. I avoid the 3 letter puppies because if needed, they're tough to support in the pre market or after hours. For the issues that tend to move a lot post earnings, this quarter...

DO is kicking off a $4.00 special dividend tomorrow morning. The puts are priced to reflect that. While they may appear to be juiced, they're not.

If all parameters were entered correctly, there's no way that the position will have a $7 difference in break even from yesterday to today due to IV change. Either the software is inaccurate or you made an error in your entries.

It's a very good idea for a newbie to explore hedged positions when starting with options. It tends to reduce a learning curve tuition that can be very expensive :) Your position can be done with fewer legs, synthetically, but since you're new to this, it's probably easier to follow by...

The short answer is that in a reverse calendar, you are expecting that after the news, the time premium in the short (far) month is going to drop more than that of the long (near month). That can be achieved in two ways. The vols can contract or the underlying's price can move away from...

>> If I buy 10 contracts of a GOOG option with a delta of 50 it is not going to be the same risk as if I buy 10 contracts of SUNW with a delta of 50. << Given that the size of the GOOG investment would be approx. 80 times larger, I would imagine that the risk might be a bit different. But...

Compared to the posters here, I know very little about the Greeks. What I can tell you is that your option's price (and its delta) is affected by multiple factors: passage of time, change in IV and stock price, distance from strike, etc. Trying to find a derivative indicator that is precise...

There are no free lunches. If it looks too good to be true, it is!