what advantages Long Gut over Strangle?

[mango23]

Thanks guys. Am learning a lot.

Found support for the getting money back => possibly a better risk:reward if you can afford it?

(Stock ticker "nifty" - so this is just theory)

https://www.theoptioncourse.com/how-to-trade-long-guts/

 

[old coot]

The block keeps me from having to reply on future posts. You went thru this elaborate diarrhea which is comically wrong. All that is needed is to price deep ITM on both the inside and outside. Solve for a move from 2700 to 3200 and the result is what was shown in my last pic.

What are the risks of trading the guts and receiving the large(r) credit balance? You are not in the box so assignment will leave you with D1 exposure. There is no opposing synthetic which keeps you flat exposure.

C’mon Man, think!

I proved you wrong with one picture. You do not know WTF you're rambling about. Your number are wrong. Absurdly so.

Learn, or don't, but stop.



.

Can't see any picture, and you'd have to show me where my math is wrong, but whatever, I come here to try to answer questions with examples and help people if possible. You're here to insult people and brag about how much money you've got.
Incidentally, I have people telling me you can get me banned. That's probably for the best, since my opinion of you is now as low as your own opinion of yourself. anybody sure of himself don't need to brag and insult. so, do your damnedest. and if you've got me blocked, I'm not sure exactly how you're seeing my posts. If I click on "reply" when your name shows with no content as last post, I can quote your post. A defect in forum software that needs to be fixed.

anyway, Piss off. I'll answer anybody whenever I please, and if you don't like it, run sniveling and crying to whomever you snivel and cry to. Talk about some sad ass personality defects.

 

[destriero]

You're lying.

You're quoting me which means the pics are visible. It's absurdly simple. Go long the box on AMZN tomorrow and come back with your fills, dump truck. I can't wait to see them. The box will only require a few hundred $ to carry.

 

[destriero]

@destriero - Ok good to have a plan to roll on down...

@old coot - get it.... yr example very close to the money. Any use in going further in? Less time value or something?

There is no fucking plan. There is no edge to shorting the guts.

Please look up "box arbitrage" ok? Stop wasting your time with this coot fool. He's chasing his tail and you're clapping.

 

[mango23]

@destriero, am new but thought the discount was either "less time value" or market makers balancing books?

 

[destriero]

You short the guts close to expiration and you're assigned. Now you're something approaching 100D/contract exposed. It's that simple. No need to discuss the arbitrage. Which has less risk of assignment...? The inside or outside?

 

[destriero]

@destriero, am new but thought the discount was either "less time value" or market makers balancing books?

Please look up "box arbitrage" ok?

 

[mango23]

yep - am on it....

 

[destriero]

Synthetics and arbitrage are important. Here are some terms.

Conversion market. Synthetic calls, puts. Box/roll arbitrage. All arbs are covered by the aforementioned.

Regarding the vol-smile. Same-strike vols must trade equal (absent carry/forward). This relates to all arbitrage boundaries. Assignment risk on deep ITM positions is often underestimated. There are small arbs everywhere but that's not what we're discussing here; the insanity that the guts as a profit center is retarded.

 

[mango23]

OK - gonna have to read up on synthetics +++

clear that once short in crossed spreads the risks can get ugly

was thinking: practice first with long only volatility plays (guts / straddle / strangle)