Search results

One can defend a position by overwriting calls above or buying larger numbers of puts as you roll them down but it's all a bad case of breakevenitis. And in the condition of noobyness, overwriting is unhighly so not recommended (unless it's something like a covered call spread, etc.) If they...

You need to put them on in 1:3 ratios! (grinning, ducking and running)

A lot of people here seek attention and approval. They make all kinds of grandiose statements and when called on them, they obfuscate - all kinds of unrelated misdirecting details come flying back at you. I'm going to tell you what you already know. Everyone wants the perfect option...

Acen writes: "if google falls to around 550,my position will be a winner-the gamma of the puts will boost my negative deltas more,than i will lose from the ATM leap on 590+ the loses from the calendar." Bben asks for details: "Could you please list for us, line by line, the entire...

Some good suggestions in your list. I'd expand on #6 and say that one should always have a blend of long and short positions. It doesn't take a rocket scientist to figure out that if one side is increasingly doing better then one should shift their bias more in that direction. Before you...

>> Another fantasy filled steaming load of gibbershit from a self proclaimed ET expert? << ROFLMAO When I read that line about being profitable on a drop to 550, I said to myself, well, that's risk free trading!

No need to do the math. If you're doing short term calculations (volatility, simple moving averages, etc.), any time you add a small amount with the new day while taking away a larger amount via the removed day (or vice versa), there's going to be a decent amount of variance in the daily...

Apart from the fact that a dividend is payment to you with your own money (stk drops the amount of the div), you have to buy the shares the day before it goes ex-div in order to get the dividend. There's no way to carry the stock overnight with insufficient margin. So even if there was a free...

Error correction for my previous post. Should read: IOW, stock dropped $2.30 but only $1.30 is true drop because stock owner gets $1.00 dividend. ITM call did not drop $2.30 as link author suggested but only $1.00 ... 30 ct dfference is due to delta.

If you spend enough time here you figure out who the morons are :) EDIT: LOLOL ... and I wasn't referring to you

I rarely agree with him as well but this time, I think he's right :)

If we didn't have moronic threads like this, how would ET readers feel superior?

Here's a real time example. LO was bid $80.68 just before the close on Weds. Of the Dec, Jan and Mar 65, 70 and 75 calls, only the March 75c was trading above parity with a bid of $6.50 (delta of .74) thereby meeting the author's requirement. This morning it went ex-div by $1 and with LO at...

AFAIK, the entire proposed concept was flawed, But assuming that one wanted to stumble down that path, the pseudo collar could be achieved better via a diagonal (one of the OP's ideas). I think that mid tem long legs are better than the furthest LEAP because they cost less and in the event...

PS MM = Money Market

You think you're sly but even if you worked at it for many years, you could never be any good as a cunning linguist. :)