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I heard he drinks childrens’ blood.

Perhaps we were talking in circles this whole thread.

Gamma focused at the current spot vs gamma that I have on the upside now (due to my ITM puts).

Good comeback. You are a credit to conservatives everywhere.

The Greeks are the same as a normal strangle. There is no reason to actually enter a gut strangle - but it can be the by-product of risk management. For example I was long SPX puts and after the market sell off I hedges my delta by buying atm calls. I wanted to cover my short delta and at the...

Sure as it describes the OP’s specific issue - which as you can see from the above post he still doesn’t get.

Again, the market has a different cost of funding than the OP. And that defines the edge. He is only looking at premium (the discount implied in the options market) with no thought to his cost to hold the position.

It's not really opportunity cost because everyone has a different financing structure. There are people who pay 10% in margin expense and there are others who fund far better than the OCC. We don't know how this guy funds.

How would you describe it without writing a paragraph given that it had been mentioned earlier in the thread.

Yes. That book

Which terms?

If the call is OTM, no one will exercise it. if the call is sufficiently ITM, someone will. you will see the premium changes based on the moneyness of the call. The allowance for funding is that you have an opportunity cost if you buy this structure. Instead you can put that money in...

I think you don’t understand the trade. There is no premium as there is no optionality. Any premium you see is an allowance for funding.

So you pay 40 cents to hopefully get an 90 cent div. Two risks, you get exercised before the div: you lose the 40 cents. You get the div and make 50 cents. In either scenario you have to fund the 140 dollars for 1 month : 1M libor is 2.3% which is approx. 20bps of cost over the month. This is...

Yeah. The cost of holding the stock position (either by borrowing the funds or the opportunity cost of investing in a treasury). It looks like an arb until you account for this cost of capital. Single stock Dividend trades are generally poor unless you know something - but if you know...

Most of it is financing related - something that retail traders underestimate.

It’s not about the home. It’s about corporate cloud users and services like Netflix that sell into the house but will buy cloud services for that.

That’s what makes entrepreneurship so hard. 500/month is nothing. Come up with a credible business plan that earns them seven to eight figures if things work out. You may find someone then.

Bloomberg does that a lot. They list the source as Bloomberg news but when you click on the article, the author is Bloomberg automation which means I will get nothing insightful from the article : just numeric data in paragraph form.

I was watching a video about a company whose stock was going to go up. It didn’t. Can someone explain to me why the stock didn’t go up?