Quote from falconview:
Calm down and count to 21 and then back again, breathing deeply. Take care of yourself ATTICUS. Don´t let your blood pressure rise.
Quote from atticus:
Get to me? No, I simply hate skieves in my sandbox.
Quote from falconview:
I´m grateful to ATTICUS for putting me on to this type of trade to sell THETA.
Quote from atticus:
You're long theta. Selling gamma.
Quote from atticus:
NO. No fcuking adjustments ....... Don't you *#^@! dare bring up adjusting gamma or any other greek. Your only concerns are direction, strike-selection and when to cover the trade.
Quote from falconview:
Thankyou ATTICUS ...... I´ve read it three times already and going to have to read it some more. To absorb the intricacies here. Wish I had brought my printer with me.
Quote from babutime:
Too bad for RIMM.
My losses wont be that bad though. I just hope the CO-CEO resigning will help the stock a little bit tomorrow.
Quote from atticus:
NO. No fcuking adjustments. Just choose a strike you think will be touched and buy a calendar at that strike. That's all you have to know. CLOSE it if it trades away from the strike to such an extent that you're no longer comfortable with the trade.
XYZ at 102. Yes, this is a hypothetical. XYZ vol is 30% and you're mildly bullish. You choose a one month calendar (front month 30d to exp).
105 APR call at 3.00
105 MAY call at 4.60
Buy May, sell April for $1.60. Now you know at 30-vol, 30-days and 102 on shares that the May call will be trading at 3.00. So the 1.40 expectancy is the value of theta over the term if you assume static volatility.
YOU WILL EARN as the stock rallies to 105. You will also earn from the long theta. IF the vol rallies you will gain. At 105 on APR exp you can expect to earn a double if vol is sitting at 30% or better.
YOU WILL LOSE if implied vol drops significantly (400bp), OR the stock trades under 97 or above 113.
Choose a strike you think will be touched over the expected holding period. Buy a calendar at that strike if bearish. Buy a fly neutral to that strike if bullish.
Don't you *#^@! dare bring up adjusting gamma or any other greek. Your only concerns are direction, strike-selection and when to cover the trade.
Quote from scottandmo:
Why do you say losses, does the halt mean the stock tanked? The after hours quotes don't seem to indicate that but I don't know what to look at when shares are halted. When will it be lifted?
Quote from scottandmo:
I found my answer, http://blogs.barrons.com/techtraderdaily/2012/03/29/rimm-halted-ahead-of-fyq4/?mod=yahoobarrons shares will resume trading in afterhours at 5:10 ET.
Interesting, I've never seen shares halted only during after hours.
Quote from ForexForex:
South Park episode "Crippled Summer", staring Atticus as Nathan and Falconview as Mimsy. You will see the resemblance of those two South Park characters to Atticus and Falconview.
I would like to post a clip but I can't find any links - Season 14, Episode 7.
Quote from atticus:
NO. No fcuking adjustments. Just choose a strike you think will be touched and buy a calendar at that strike. That's all you have to know. CLOSE it if it trades away from the strike to such an extent that you're no longer comfortable with the trade.
XYZ at 102. Yes, this is a hypothetical. XYZ vol is 30% and you're mildly bullish. You choose a one month calendar (front month 30d to exp).
105 APR call at 3.00
105 MAY call at 4.60
Buy May, sell April for $1.60. Now you know at 30-vol, 30-days and 102 on shares that the May call will be trading at 3.00. So the 1.40 expectancy is the value of theta over the term if you assume static volatility.
YOU WILL EARN as the stock rallies to 105. You will also earn from the long theta. IF the vol rallies you will gain. At 105 on APR exp you can expect to earn a double if vol is sitting at 30% or better.
YOU WILL LOSE if implied vol drops significantly (400bp), OR the stock trades under 97 or above 113.
Choose a strike you think will be touched over the expected holding period. Buy a calendar at that strike if bearish. Buy a fly neutral to that strike if bullish.
Don't you *#^@! dare bring up adjusting gamma or any other greek. Your only concerns are direction, strike-selection and when to cover the trade.
Quote from atticus:
... Just choose a strike you think will be touched and buy a calendar at that strike. That's all you have to know. CLOSE it if it trades away from the strike to such an extent that you're no longer comfortable with the trade.
XYZ at 102. Yes, this is a hypothetical. XYZ vol is 30% and you're mildly bullish. You choose a one month calendar (front month 30d to exp).
105 APR call at 3.00
105 MAY call at 4.60
Buy May, sell April for $1.60. Now you know at 30-vol, 30-days and 102 on shares that the May call will be trading at 3.00. So the 1.40 expectancy is the value of theta over the term if you assume static volatility.
YOU WILL EARN as the stock rallies to 105. You will also earn from the long theta. IF the vol rallies you will gain. At 105 on APR exp you can expect to earn a double if vol is sitting at 30% or better.
YOU WILL LOSE if implied vol drops significantly (400bp), OR the stock trades under 97 or above 113.
Choose a strike you think will be touched over the expected holding period. Buy a calendar at that strike if bearish. Buy a fly neutral to that strike if bullish.
Don't you *#^@! dare bring up adjusting gamma or any other greek. Your only concerns are direction, strike-selection and when to cover the trade.