Bull Call Spreads vs. Bull Put Spreads

Quote from babutime:

I was gonna call shotgun but doobs beat me to it.

*raises hand* Can I be # 3 atticus?

Wow you guys are way too suave with your drinks. I'm still shootin jagers and tequila...
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Sure thing, will send PM in the morning.

I am off to do some Jager body shots on myself.
 
i don't understand how someone who already has the option analysis available to them through their TOS platform is not using it to *see* the answers to their own questions.

falcon, have you spent *any* time at all with the "analyze" tab? right click on an option in the chain, highlight buy/sell, then notice the menu popping up with pretty much *every* combo you have ever asked about here in all caps, *all of them*, try one. you can see it on the next tab over.

spend some time with the "risk graph", get to know it, play with it, adjust stuff, add/remove legs, move out strikes, change prices, etc. you can use it as your order entry tool as well, (simply right click on the combo you've worked on and create/submit an order from it.) one can also use it as a real time quote page for various combos being watched, to follow prices as the underlying moves, or when ready to place an order quickly to open/exit a spread position. again, i'd highly recommend spending some time on that tab in TOS.

better return (cheaper price) on a debit vert comes from it being more OTM when bought. while ATM you might pay ~$2.5 for a $5 wide strike (even money), the farther OTM you go the less you will pay for a $5 wide strike vert, which would make sense, right? go a few strikes out, you'll find those $1 verts easily. yes, they are directional plays, with limited risk and limited reward.
 
Quote from pikerforlife:

i don't understand how someone who already has the option analysis available to them through their TOS platform is not using it to *see* the answers to their own questions.

falcon, have you spent *any* time at all with the "analyze" tab? right click on an option in the chain, highlight buy/sell, then notice the menu popping up with pretty much *every* combo you have ever asked about here in all caps, *all of them*, try one. you can see it on the next tab over.

spend some time with the "risk graph", get to know it, play with it, adjust stuff, add/remove legs, move out strikes, change prices, etc. you can use it as your order entry tool as well, (simply right click on the combo you've worked on and create/submit an order from it.) one can also use it as a real time quote page for various combos being watched, to follow prices as the underlying moves, or when ready to place an order quickly to open/exit a spread position. again, i'd highly recommend spending some time on that tab in TOS.

better return (cheaper price) on a debit vert comes from it being more OTM when bought. while ATM you might pay ~$2.5 for a $5 wide strike (even money), the farther OTM you go the less you will pay for a $5 wide strike vert, which would make sense, right? go a few strikes out, you'll find those $1 verts easily. yes, they are directional plays, with limited risk and limited reward.
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+1

I spent a few hours working with Oanda's "3D" path-indy (fwd-start) and path-dependent FX options before it occurred to me to price a "2D" synthetic Euro-style binary range. It's obviously something Oanda's quants had not considered as they were pricing the Euro-style rangers as American-style DNTs. It was a beautiful thing.

This is certainly not going to have the obvious payoff. Listed-vol is not going to hand you a persistent edge, but you will know what to trade when there is a trade to be made.

My point is that this is all heuristic process. Whether the approach is efficient and productive is another matter. You have to put the time in, constructively, to get anything from it. Otherwise you need to go the managed route.
 
Quote from atticus:

+1

I spent a few hours working with Oanda's "3D" path-indy (fwd-start) and path-dependent FX options before it occurred to me to price a "2D" synthetic Euro-style binary range. It's obviously something Oanda's quants had not considered as they were pricing the Euro-style rangers as American-style DNTs. It was a beautiful thing.

This is certainly not going to have the obvious payoff. Listed-vol is not going to hand you a persistent edge, but you will know what to trade when there is a trade to be made.

My point is that this is all heuristic process. Whether the approach is efficient and productive is another matter. You have to put the time in, constructively, to get anything from it. Otherwise you need to go the managed route.
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Just checking in today, Atticus. Glad to see you're handling all the basics (and advanced stuff) with everyone here. Your patience needs to be noted, and your willingness to help others.

The folks here who benefit from you expertise are very fortunate, and I don't mind going on the record saying so.

You and I understand options in the purest sense, and it all seems so simple..... but, just like my little classes, we have to understand that not everyone has the experience we have... and it pays off to help others. Maybe not with $$, but you know what I mean.

Keep it up...

Don
 
Thanks Don. 75 and not a cloud at the lake. (W shore Lake Tahoe)

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