Indeed, or t/d if you like
best options strategies for advanced beginners
- Thread starter shMark
- Start date
that’s like saying “use your speedometer” to determine the value of your car.
It seems to me that the same thing would happen if you had bought the stock. Less the premium received. A loss. I don’t sell CSP unless im willing to own the stock.
Interesting, what do you exactly mean by this? (i know g = f'(x) of d)
You are capping your upside without limiting your downside - so you're "willing to own the stock" but don't like it too much
Hmm. You can back of the envelope the value of the option by looking gamma to theta relatio. That’s like determining the value of the car based on speedometer and a fuel gauge, right?
Suppose you are a directional trader who wants to be longer term invested, in my view one can use the longer expiration and convert the postion somewhat when you want to 'take tempory profits', or expect slower momentum* after a relatively large move. Or use t/g for creating spreads/calenders. Do you disagree with this?(really curious)
* ofcourse the assumption one can anyhow predict this beyond random, which can be a futile attempt
But do you disagree with this?
>> best options strategies for advanced beginners
That's a peculiar formulation, I gotta use it too:
- Job opening for senior junior developers.
- For sale: state of the art obsolete machines.
- Looking for progressive conservative to join our party.
- World's leading unremarkable scientists make an announcement.
That's a peculiar formulation, I gotta use it too:
- Job opening for senior junior developers.
- For sale: state of the art obsolete machines.
- Looking for progressive conservative to join our party.
- World's leading unremarkable scientists make an announcement.
