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The Delta on long calls for SDS (Ultrashort S&P500 Proshares), as shown on TOS, is positive. I understand that would agree with the standard definition of deltas for long calls. However, since this is market reversed, shouldn't these be shown as Delta negative? E.g., if I had some long call...

MTE, exactly correct. donnap, I believe that would end up with 0=X I did a poor job of explaining how I used these, as well as who I was targeting this information at. This was posted for the other beginners out there like myself, as the pro's already know it. I have always...

I'm a rank novice boot-licken Options beginner. I lurk a lot, because I don't have much I can contribute. But I've found these formula's to be easy to remember, and very useful for me. They aren't mine, I just haven't ever seen them presented this way. Some definitions: S => Stock C =>...

Well, in the morning it wasn't stale. It changed around noon, jumping from about .15 to 4.60. Where it stayed all day. That's not to say you aren't correct - some sort of problem, but I would have thought it wouldn't go half a day without being caught. The same problem showed up on...

I've liked them. I'm not a pro, just primarily a swing trader. Been at it a couple of years. I've learned a lot using their graphs. I wish they had more documentation though - I have to write support for elaborations on things - e.g., one place they will show Volatility, another they will...

on ARCC, Sep 07, the ITM call (strike $15) ask is $2.40, while the OTM (strike 17.5) ask is $4.60! The bid is $0.15 - quite a spread. It didn't look like this when I bought it; it was something like $0.10/$0.20 (bid/ask) at that time (more or less). What's going on here? Has the market...

In looking over the studies available to TOS Charts, I can't find a study labled RSI. I know they have to have it, but it must be under a different name then RSI. Any ideas?

Average volume for ICLR runs around 110K per day. Through the normal market hours, it ran -7% below average volume, and dropped $-1.39, closing at $46.39. At around 16:29, there was a trade of 170K shares, which pushed the stock up to $47.36, or about $0.97 up. :0 This was a huge volume...

IVT - Great! Made me laugh out loud, for sure!

Coach, have gone back a few pages, haven't seen much on spreads you are interested in lately. Any thoughts on SPX DEC 1310/1295 puts?

Thanks for the insight guys! Yes, you interpreted the values correctly.

I put on a small iron condor (2 NOV 160/165/190/195) at $1.07/$1.79/$1.79/$1.01 back on 10/27. I had watched it gradually gain some credit, as it was staying around the middle of the rather broad flat. Until today, when SHLD announced they would be announcing earnings on 11/16. I...

Much appreciated.

I must be doing something wrong with the calculations, since I don't get 9 as the average STD. Assuming it's 5 days until some event, like the news on the 26th, then .300 (IV) / 16 (SQRoot of 256) => 0.01875 .01875*2.24 (SQRoot of 5) = .042 daily IV 14 (approx value of RNVS at the time)...

If a long condor can't deal with the high IV and the move, then what would have been a better plan (without knowing the future of course)? I was choosing a neurtal strategy to try and accomodate a swing in underlaying price. And I was wrong, and several people managed to know it before...

MoMTS - I get your point on 'why was it high' - it was high because of forthcoming events; news on 26th, FDA in Nov. But isn't that the reason volatility (IV) was high to begin with, was the uncertainty? I keep reading to sell when options are expensive, which I take to mean high IV...

So I guess I was taking the phrase "sell high volatility, buy low volatility" too literally; at some point, it becomes so high that it's too dangerous to deal with from a selling viewpoint. Any comments on this? I've tried several times now to utilize a 'sell on high volatilty", and have...

Guess in the future, with such high IV, a better play to consider(prior to the event making it evident) would have been a straddle/strangle or short butterfly/condo? I mean, I know it's clearly evident now, but prior, should that really have been my consideration given the high IV? JB

BAM! Thanks guys!

Guys, Thanks for the response. I'm beginning to come around to the same conclusion. I forgot where I got this quote from, but it seems to apply: "Options are usually overpriced for a reason". I appreciate your taking the time to 'give me a clue' where one was missing. I'm really...