Search results

Many of your conclusions are inconclusive.

C'mon man. 25-delta is kinda like halfway to 50-delta! (Valley Boy grin)

Your first consideration with long straddles/strangles etc. is direction (UL price change). Not far behind that is time decay. AFAIK, for an index option, change in IV is far less imp't than the first two. Usng cash is a great idea for jumping into "whatever it's calleds". :)

If you hold the existing position as is and QQQ drops several pts, you'll have a straddle that's worth less because of time decay. If you add the 2 puts and it drops, you make out nicely, perhaps even handsomely. OTOH, if you add the 2 puts and QQQ trades in a box or goes up, you wasted that...

I don't follow your position and numbers. The double calendar looks like a riskless arb and that doesn't compute with your description and the 2nd set of numbers have different strikes. Were the 2nd set just random prices that you observed? Generally speaking, you can eyeball at an...

You can use any combination of UL and options that achieves a P&L spectrum that you desire. Some standard strategies include: BACKSPREAD: sell lower call strike, buy more at higher strike RATIO SPREAD: buy lower call strike, sell more at higher strike RATIO CALENDAR: sell more near...

Well yeh. I was just confused by atticus staing that he didn't think that it was a vol play but the OP could correct him that was his intention. Mis-intention wouldn't have confused me :)

I must be missing something. I understand selling fat IV against the next month but how could going long an inflated IV option that's going to parity in the AM a wager on implied vol ?

Locking in AH gains has been posted here numerous times in the past.

I'm not looking to get in the middle of the contest ... but I disagree with you. With exp 3 days away and the calls deep ITM, it's a binary play since they'll trade near parity in the AM. IV isn't relevant... other than the questionable buying of it. Obviously, you can't trade the options...

Yahoo quotes and market orders is the secret to success! :D :confused: :eek:

When I glanced AAPL last night before replying to the OP, I saw that the last trade was 394, up 18+. Since I wasn't following it (and didn't look carefully), I didn't realize that it had hit 405 in PM trading (as per the info provided by atticus). So at 405, the strangle DID have a...

No offense to the OP but this is an object lesson for how hard it is to overcome the collapse of high IV options post EA. AAPL moved 18+ pts (15 above the long call) and the strangle lost money. I just looked at Time & Sales and there was a window of about 30 seonds at the open for bailing...

I can't speak for the behavior of the Weekly's since I don't follow them. I used to do a lot of diagonal EA plays (straddles and strangles) and we explored buying the far month sooner to benefit from the increasing IV and selling the near month just before the EA to capture to the inflated...

I can't speak for the behavior of the Weekly's since I don't follow them. I used to do a lot of diagonal EA plays (straddles and strangles) and we explored buying the far month sooner to benefit from the increasing IV and selling the near month just before the EA to capture to the inflated...

Sometimes that works if you get some move - tho it wouldn't have helped the OP since I fon't thonk that are any "two weeklies" :). He'd have had to go out to Aug exp and that would have done much better with the 15+ pt move since it wasn't as IV inflated.

IV is going to collapse in the AM. If it goes to the levels of later months, the put will be 25-50 cts and the call will likely trade near parity since it's almost 3 strikes ITM and so close to exp. If this occurs, your strangle is under water. If for some reason IV doesn't collapse all...

Sell an earlier month and get more premium per day. For ex, 6 mos. out will get you 1/2 the premium for 18 months out. I'd also sell some OTM calls on part of existing portfolio to yield some extra income - and cap gain if assigned.

Deep ITM calls usually have wide spreads and little to no time premium unless you go way out timewise and then you have other issues. If they trade below parity you may be assigned early and with no available stock to borrow, you'll have to buy in and resell something else (more slippage and...