Amazon Stock Split Is Affecting Ability To Trade Vertical Option Spreads...

No, you're arrogant. Vol can be measured. Prove it is less volatile, or you're making up nonsense

lol, its moved up 8% and down 8% in two days.

some posters here are beyond ridiculous
 
Oh yeah, no vol here, practically a flatliner

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Overnight said:
Could you not just increase size to make up for lower vol?
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You could - even if the vol wasn't lower. The problem isn't vol so much as range - which means you'll now pay 20x the fees for a given P&L. I haven't been trading verticals in it - ratios and flies, for the most part - but the principle is the same.

E.g., a $50-wide 1/2/1 fly in AMZN, pre-split, cost me $2.60 in comms and fees; the equivalent post-split, 20 $2.50-wide flies, would cost $52. And given that I've been buying multiples - typically 2x-8x, depending on how much confidence I had in the move I was projecting for it - the prospect of paying over $400 in comms and fees alone is not especially appealing. Neither is the hassle of filling 160 flies instead of 8 - which, given how hard to fill flies can be, is another significant negative factor. A major one, in fact.

So, AMZN - which has made me a nice little chunk of money before now - is dead, as far as I'm concerned.
 
ok so maybe the commissions could be a factor. But weren't the spreads wider than they are now ? Or were you getting some miracle fills with edge , that the trillion dollar computers didn't know about.
 
JackMorgan said:
ok so maybe the commissions could be a factor. But weren't the spreads wider than they are now ? Or were you getting some miracle fills with edge , that the trillion dollar computers didn't know about.
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There's no "maybe" about it. Pick up a phone, call a broker, and have them explain it to you... although Zoom would probably work better for showing the bright crayons.

Tip: if your mommy and daddy are willing to pay for somebody to pop your cherry, that might get you started on winding down the ass-wipe factor in your attitude. Talking shit to people you know nothing about is a straight-up dick move by cowardly punks protected by distance and anonymity.
 
BlueWaterSailor said:
There's no "maybe" about it. Pick up a phone, call a broker, and have them explain it to you... although Zoom would probably work better for showing the bright crayons.

Tip: if your mommy and daddy are willing to pay for somebody to pop your cherry, that might get you started on winding down the ass-wipe factor in your attitude. Talking shit to people you know nothing about is a straight-up dick move by cowardly punks protected by distance and anonymity.
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Wow, you sound like a violent , and dangerous person.
 
Con1991 said:
It is explained in my original post. Put simply, AMZN had more volatility pre-split. Noboby said anything about 'free money', margin in spreads in equal to the width of the strikes. Not sure what your problem is exactly, you come across as arrogant.
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Yeah, no volatility. Thanks for explaining this to us
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