Search results

You can guesstimate what options will achieve by looking at existing option chains - albeit limited to price movement equivalent to strike difference and expiration series difference. For example, a $30 stk. If price dropped $2.50 today, the $30 put would go to the value of the current...

TradeStation will allow you to test your ideas historically. I don't know if it can be on a database or if limited to one issue at a time: http://www.tradestation.com/strategy_testing/st_evaluation.shtm When I was in my TA phase 20 years ago, I used Technifilter which can search and test...

ONNNNNK! Not true. Wanna quit while you're behind? :)

I meant to mention in my earlier reply that if you're buying ITM verticals (for ex, the 80 ct cost for your $1 spread), your R/R is skewed toward the risk side. IOW, you have the potential to make 20 cts when right and lose 80 cts when wrong. If you have no edge and hypothetically, everything...

ITM and OTM options tend to have higher IV (put-call parity) than ATM, creating a volatility smile. But that isn't always the case as market events result in frowns, smirks, forward skew, reverse skew, etc.

It's still FUBAR. If you legged in then the add'l profit is due to just that. Posting it days after taking the position means nothing. And real time prices are not msileading. I looked at this position real time the day you posted it. Since then, the calls have DROPPED and the puts have...

atticus, thx for the tinypic link. I'll give it a try as soon as I figure out PAINT :) Re the combo graph, if the Dec puts have a much higher IV than the Apr calls, a risk graph at Apr exp will be accurate if using the Dec IV. But anything prior to that is problematic unless the program...

This is getting FUBAR. Dec puts, not calls and... The calls aren't up 43 cts since the OP. Long strangles don't make money on both sides when the UL makes a decent move in one direction. On the day of your original post, the calls were trading a dollar higher at 4.535 not 3.48...

You might consider checking with IVolatility to see how they calculate their IV numbers because I think they use a weighted algorithm.

It's a memory allocation problem. Press CTRL-ALT-DEL until it resolves itself.

Yeh, it's a strategy for when you are bearish on volatility and think = hope that the market prices will remain stable. But it's also a higher risk/low reward strategy and is something most should stay away from unless they have an exit plan, decisive money management skills as well as the...

And chances are, as soon as he shifts to directional, the market will trade in a box.

Rolling the calls up and pyramiding them into a bigger position in the midst of a strong uptrend is an awful lotta fun until the underlying reverses hard. Been there, done that and owned the tee shirt once upon a time. How do you spell C-O-L-E-C-O ? :eek:

It might be tough since at that level, GOOG options have 10 pt strikes :)

atticus, 2 questions. From a glance at the quote chains at OX, the puts have a much higher IV than the calls. For a pre Apr expiration graph a combo like this, what do you use for the IV for that period? If not a complicated explanation, how do you create a screen capture like that...

As noted by others, it's a combo. If I read it right, how do you buy those calls for a dollar less than your quote shows? If you expect an up trending market, why waste money on puts now? Other than an overnight crash, you'll liely be able to buy these puts (or others) later for less...

Risk? Did you say risk? Selling naked options is FREE money !!! :D :p :D

How is a naked straddle market neutral (check your net delta)? Or are you saying that you hope WINN will be neutral? If WINN moves, how is it your naked straddle low risk? If WINN moves, how will you make more than someone who is directionally correct? You want a bottom up approach...

Simple and obvious answer: More selling than buying. Trying to understand it will only confuse you. Just go with the flow :)