ARE THERE ANY OPPORTUNITIES TO BE HAD IN DAY TRADING OPTIONS?
If you expect a big move everybody expects one, so the i.v. is high (expensive options). Then, the big move comes, if it ever materialize, with a big drop in i.v. (cheap options).Quote from Mikey111:
... You are looking for a strong move on a specific equity - big up, or big down - you don't really care. ...
Quote from Mikey111:
Yes, see my reply on Earnings Play earlier today. You are looking for a strong move on a specific equity - big up, or big down - you don't really care. If there is an inconsequential move you lose Theta and so you would want to close off the position before too long.
To summarise you are selling reverse Call ratio spreads just before some major announcement or some major anticipated event.
Generally, you don't stand to gain much in this game, given the risk and given the market maker's spreads, and given the difficulty in predicting the underlying direction.
Best wishes
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