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Depends on the time frame you're trading. If you're doing 10-second scalps, then you don't care about the yearly/monthly/etc. trends. If you're planning to hold stocks in your portfolio for the next 20 years, the 10-tick TF is probably not too applicable to you. In general, I consider TA to be...

It was the Spanish Prisoner Noorseekee Melon Drop. But it wouldn't ring any bells for you; you don't trade options.

Can't possibly go tits up.

So you're the one who figured it out and stole it! I should have known.

Dark greens suck too, for those positions that have been stuck so long that they've grown moss.

That's one of the things you'll learn from running that paper trade - and why it's not as trivial as it seems. Seriously, I encourage you to do it; your choice of whether to hedge with the underlying or futures. (Also, just for fun: once you've done it enough to be comfortable with the process...

You will. That's what long vol means: you're going to bleed, possibly for a long time, while waiting for an outlier event. Also, if you think that gamma scalping is "so simple", you may be missing a few things. :) Just for fun: pick a ticker, "buy" 100 straddles in it, then run a spreadsheet...

...aaaand your entire thesis founders on this point. IF you had magical foreknowledge of this sort, life would be very easy indeed. In real life, however, "growth stock" does not mean anything like "will go up quickly" without a corresponding likelihood of "will go down just as quickly", or...

If there was one that was better than others, then that's what everybody would use... which would make the cost go up until it wasn't better any longer. Basic supply and demand. So, no: there isn't anything that's "better" by any obvious metric. Slow movers have a lower IV, which means lower...

Come on, it's basic grammar. "Bork" before "fritz", except where preceded by "kerfluffle".

Good luck filling it at that price - especially since there's no open interest at those strikes. That spread is being quoted at -2.10@-2.45, or 0.10@0.16 for the call-side equivalent. The price your broker/platform puts up doesn't say anything about what the market will actually give you.

Short version: No, it's not bad news for your longs. Slightly longer version (@destriero, please do correct me if I miss something): pros price options in volatility instead of dollars, and vol usually moves inverse to price - so since he's short those vols, he's actually long the market...

I got on a year later, when I went to work for COBEX in St. Thomas. Peter de Blanc had recently set up shop as the very first ISP in the USVIs, and I happened to sail into Long Bay and was looking for work as a sysadmin - a match made in heaven. We were running the whole shebang over a double...

Quoting a long-ago friend, from memory: "The best way to get information on USENET is not to ask a question but to make a patently wrong assertion. If you can stand the flames, you'll get a terrific education."

@winstonwee, you're new here so you wouldn't know - but @destriero can smell the color, charm, and spin of an options trade through six feet of lead. While he's on another continent. And anesthetized. As a certain Brit I know might say, he was extracting the urine; engaging in a bit of visual...

Truly, we are blessed to be in the presence of greatness. @destriero , why oh why have you been keeping this to yourself? Now I'll have to go throw myself off the nearest vesting cliff in terminal embarrassment. Imagine me trying to explain the put-call whatever to someone with 4.0 in finance...

Nope; still wrong. Run it through an analyzer, will ya?

Yeah. The entire point of put-call parity (or, ya know, whatever it's called :) ) is "no arbitrage" - meaning that no combination of puts and calls will result in a greater return than the underlying. Otherwise, you'd buy (sell) synthetic longs (shorts) and immediately close them out by selling...

Here ya go. This is the $10-wide inverted strangle that you're recommending. That is, you're getting into a trade that is worth -$10 * 100, or $1000 negative right from the start - and getting paid less than that for it. As an example, NLOK is about $20 right now; the 15C mid is 4.70 and the...

So: either 1) her strategy served her until the very end, 2) she found a place with a better free lunch, or 3) she blew out her account (but then, she'd definitely show up for the free lunch :sneaky:.) Sounds like a two out of three winning scenario... :D