Search results

1. Buy $1000 worth of the 110 strike of XYZ 2. Buy $500 worth of the 100 strike and $500 worth of the 120 strike Certainly option 2 allows a higher chance for the smaller strike to finish in the money, but other than that, are these close to being essentially equivalent from a risk/reward...

I deleted my last post after rereading and researching net position delta, and so a movement of 19 shares of the underlying is certainly more aggressive than a movement of 13 shares. However, in this scenario, I estimate that AAPL would have to exceed 188 or so to outperform the 160/175 spread...

I hope you can check my logic/math here: For example sake using round numbers, AAPL: A) Long 140 of the Jun 2016 160's where delta is .1385; the net delta is thus 140 * .1385 or 19.39. Converting to a bull call spread but more of them, buy 60 more of the 160's and sell 200 of the 175's B) Long...

And then assumedly the higher one means more exposure to the stock and thus more bullish...

1. Delta of long call times quantity (the number of contracts) VS. 2. Delta of spreads which are: Delta of long calls - delta of short calls times quantity (do it again for second spread). Then add the deltas? Ultimately, Both deltas in 1 vs 2 will assumedly be positive. Then what is the...

Would love some basic assistance in doing so

Well the objective was to use the cash to also obtain a 140/160 spread

Hi - want to understand if this is a more bullish position. Suppose one has the AAPL Jan 2016 130 calls. One can then sell a higher strike call (say the 160's), and take in some premium (netting to cash). Of course this is less bullish as it limits upside. HOWEVER, suppose one then takes...

AAPL

In which case I have to pay a premium and buy the Puts?

I'm not sure I can or am allowed or am qualified to short the stock...

Cause I'm not sure I can sell a naked call. Furthermore, I'm not quite sure how to hedge with the underlying, unless you mean selling it short?

But I can't cause of the 30 day holding period limitation, otherwise I'd just close the spread position.

Hi - Our Firm has a 30 day holding period. Suppose I put on a 135/145 bull call spread that expires in 45 days. Stock rallies in a week. I cannot close out the spread position earlier than 30 days. What else can I possibly do to lock in gains? Buy puts? Buy or sell a similar call or put...

I love the Martingale reference, thanks for keeping me grounded. I agree legging out requires cash that I could otherwise use. I suppose it boils down to this: Suppose, for a moment, one decides, as a totally separate trade, to go long the 200 call. Then that is the same as closing out the...

I don't, but without knowing where the underlying currently trades (could be as varied as 110 - 190), what would be wrong with such a spread? (as a response to "closing the account")

Yes I'm still bullish, and I suppose closing the short is a more bullish move?

Yes buying to close the short position and keeping the long. I'm wondering if I should be thinking if I would be "buying the 200 call at a reduced price as if establishing a new long 200 call" and deciding if that is a trade I would have done if I started with no position (100% cash).

Bull call spread with same expiration. Stock goes down. Let's say it is a 100/200 strike spread. I can now buy back the 200 strike leg at a profit. Is this advisable? In my head this is the equivalent of buying the 200 strike at today's price like creating a new long call position - so...

Put selling can be better than covered calls, as there is only one transaction most of the time. There’s a strategy, as explained here, to sell the Put, then if Put to, sell the covered calls until called away, and then sell the Put again. I, and many others, have done this with the very...