Only trading options instead of stocks?

Quote from tradingjournals:

What the fuck are you talking about?

Did you not state that call delta can be 0.5, or below 0.5? Read the posts in this thread. Give an example if you think the statement is right. There is an option calculator online.

Good luck to you finding your (non-existent) examples?
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Are you drinking? All ATM options have a .50 delta. ALL!!!!!!!!

If a stock is at 100, what is the probability of it closing above or below 100? It's 50%!!!! So the 100 call has a 50 delta. I don't need to give you an example as basic math seems to be a challenge for you.
 
Quote from Maverick74:

Are you drinking? All ATM options have a .50 delta. ALL!!!!!!!!
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Give ONLY one example where delta is 0.5. If it is all, you should not have a problem to give an example.
 
Quote from tradingjournals:

Give ONLY one example where delta is 0.5. If it is all, you should not have a problem to give an example.
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TJ, pull up any option chain. Every one of them is a 50 delta. Seriously man, are you really this dense? I don't have time to go through and look for a stock that is sitting exactly ATM on the strike and take a screen shot to show you. They are all 50 deltas! My God kid.
 
Quote from tradingjournals:

How sure are you? Give me ONLY one example where an ATM call delta is below 0.5, if you think you are right.

What happened to the 0.5 answer? You did not give an example. It must be tough to search for something that may not exist.

What do you have to offer if I were consider teaching you what you lack in options?
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Seriously...stop wasting bandwidth. Go pick up an option 101 book...

Look at qqq 56 and 57 strikes.
 
Quote from 1a2b3cppp:

I just read somewhere that said any stock position can be replicated with options, and then it went on to talk about how it's advantageous to do so with options instead of buying stock.

So like if want you be long a stock do you just buy a call instead? How would you determine what strike price makes your position equivalent to having bought shares instead?

I guess the difference would be your long stock position lasts forever and your option expires eventually.
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Synthetic stock via options has the same P&L as the natural. It requires less margin (20% vs 50%) but has more slippage and commissions (2 legs instead of one).
 
Quote from stock777:

those selling you the options are not stupid (most of the time) , thus there is usually little edge other than you being RIGHT about something regarding the stock price movement.
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The people selling options are just as stupid as those buying them
 
Quote from d08:

Options are for playing volatility and other directionless strategies, not meant for extra leverage (usually spread matters).
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Options are meant to give you many more ways to skin the cat (or be skinned). What you see as their use is not their only use.
 
Quote from Maverick74:

Are you drinking? All ATM options have a .50 delta. ALL!!!!!!!!

If a stock is at 100, what is the probability of it closing above or below 100? It's 50%!!!! So the 100 call has a 50 delta. I don't need to give you an example as basic math seems to be a challenge for you.
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You're being nitpick humped over technical details. An ATM call's delta is higher than a put's delta and the greater the interest rate, the IV and the time remaining, the greater the call's delta.

So even if close to expiration with low IV and low carry rate, the call's delta will be fractionally higher than the put. So technically, what you have is someone who wants to prove to you that .501 can never be 1/2 :)
 
Quote from spindr0:

Options are meant to give you many more ways to skin the cat (or be skinned). What you see as their use is not their only use.
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Absolutely correct! If only new traders realize that before they fully engage the market, it will help prevent many future heartaches and frustrations that comes with the territory.
 
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