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Heh! 30 years ago I was a covered call seller. Then I discovered equivalents and I became a naked put seller. Often, I'd roll the NP to the next month on expiration Friday. Then we had a year where the DJIA dropped for a coupla months. My ability to adjust was reasonably good so I...

Small detail... intrinsic is only there if the option is ITM (in the money) Time premium changes for several reasons. The underlying moves, IV changes. Imminent dividends - tho I suppose that I may corrected and it's a volatility adjustment to compensate for the pending ex-div. But...

Expanding on taowave's numbers... He's buying a bullish July 26/28 call spread and funding most of it by selling the July 24 put. Net cost is 10 cts. At exp, the bull spread has a maximum value of $2 above 28. With a 10 ct cost, the maxium profit is $1.90 B/t 24 and 26 the options...

Buy some privets Extra bonus is that the puppy can use them!

It hurts Polo

In case you weren't aware of it, the OX site is up and running again.

If you're going to use $21 as the premium then you're going to have to use dollars in the rest of the calculation rather than pts. Doing it via pts, the correct calculation for the "maximum" would be: .21 + Maximum((.15 * $110 - $90) = .21 -$73.50,) Since this is a negative number, the...

>> $21 + Maximum((.15 * $110 - $90) << Multiplication takes precedence over subtraction :) Since the answer is negative, the maximum does not apply. However, since the example is FUBAR, you can blame it on the OP :D

Margin requirement is $221 less the premium received ($21) so SMA debit amt is $200

What do the number of monitors and their resolution have to do with saving an IB page layout (symbol, bid, ask, last, change, vol, etc.) in order to transfer it to another computer? The page layout is the same whether you use a single monitor or multiple monitors. It seems as if you're...

Good explanation of the tradeoffs of a spread vs a long call. Options involve a lot of moving parts (price, time, etc.) and the comparative performance will depend on where the components are. Your example is one snapshot in time and price. If the stock didn't move up as much or moved up...

It might be if the two underlyings tracked each other at a fairly consistent 2:1 ratio but 2X leveraged funds tend not to do this. As JJacks suggested, it's a good idea to model past performance using historrical data to see how this would have performed under various market conditions,

I know that you know this but that's only on an expiration basis... Several pts lower, the 25p's delta will exceed 1/2 that of the 30p. So if BP continues down immediately, this spread will be a loser long before 20. If it falls below 20 before expiration, one will have never had the...

Don't know anything about it but the CBOE offers one at: http://www.cboe.com/tradtool/virtualtrade.aspx

Thanks for the suggestions. I've looked at a lot of links but haven't found exactly what I'm after yet. It's out there somewhere.

So what you're saying is that the really smart ones (or lucky guessers) who get the direction right make milliuons and the others lose their shirts. Have you got anything for the rest of us who just want to make something on the vol collapse, regardless of price direction? :)

Let's throw in a coupla bad adjustments as well :)

That would be sorta what I'm looking for. However, they get an IV of 14.5 for their example whereas my BS formula in a spreadsheet and a stand alone program indicate that it's more like 22 (scratching head).