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Search: Posts Made By: ACstudio
Forum: Options April 2nd, 2015, 09:51 PM
Replies: 27
Views: 9,019
Posted By ACstudio
The period between 45 and 15 days to expiration...

The period between 45 and 15 days to expiration has the most rapid Theta decay in the Theta Decay Curve. And therefore will yield the highest return on the capital you are tying up when selling...
Forum: Options March 20th, 2015, 12:39 PM
Replies: 11
Views: 3,299
Posted By ACstudio
No problem. If you wanted to reverse your...

No problem.

If you wanted to reverse your call position all with one broker you would have had to buy 20 lots. This would have flattened the short calls and went long another 10 and would have...
Forum: Options March 19th, 2015, 11:21 PM
Replies: 11
Views: 3,299
Posted By ACstudio
K..lemme go through it again and see if I got...

K..lemme go through it again and see if I got this right.

Transaction A = .50 from max credit of sold calls + .99 from stock price increase = 1.49
Transaction B = Bought for .60 sold for 1.00...
Forum: Options March 19th, 2015, 05:15 PM
Replies: 11
Views: 3,299
Posted By ACstudio
I see it like this. Had all positions been...

I see it like this.

Had all positions been with separate brokers you would be up 500+400+990 (for the .99 gain in 1000 shares GE stock) total=1890

If you wanted to create the same risk profile...
Forum: Options March 14th, 2015, 12:51 PM
Replies: 10
Views: 3,181
Posted By ACstudio
Always a good idea to learn as much as possible. ...

Always a good idea to learn as much as possible. Keep in mind that there are algorithms that can track millions of occurrences for whatever ratio you want to look at and if there were any advantage...
Forum: Options March 13th, 2015, 03:50 PM
Replies: 10
Views: 3,181
Posted By ACstudio
I agree with the above as far as the prices being...

I agree with the above as far as the prices being what they are. But if I want to look at open interest or volume as an indicator of sentiment I might consider that no one really knows what those...
Forum: Options March 8th, 2015, 11:55 PM
Replies: 11
Views: 6,798
Posted By ACstudio
Ye that should have settled on the 6th as it...

Ye that should have settled on the 6th as it expired on the 5th.....so it should have expired worthless giving you max profit. Be very careful carrying these into expiration...as you can see if it...
Forum: Options March 7th, 2015, 11:23 PM
Replies: 11
Views: 6,798
Posted By ACstudio
Owning the contracts gives you the right to sell...

Owning the contracts gives you the right to sell them or buy the stock at the strike price. It's a contract....to do with as you please. Like a coupon for a 2$ pizza....if you don't use it or sell...
Forum: Options March 7th, 2015, 12:58 AM
Replies: 27
Views: 9,019
Posted By ACstudio
Taking a shot at both questions here. As for...

Taking a shot at both questions here. As for "best" anything whether it be returns or strike selection it is important to understand that options are priced around probabilities.

When you are...
Forum: Options March 6th, 2015, 10:29 PM
Replies: 11
Views: 6,798
Posted By ACstudio
As was stated buying an option gives you a...

As was stated buying an option gives you a right....selling an option gives you an obligation. But the 2 positions you describe are different. The long call you bought can be sold anytime up to Fri...
Forum: Options March 6th, 2015, 10:14 PM
Replies: 11
Views: 7,173
Posted By ACstudio
1. If you set a stop it isn't just...

1. If you set a stop it isn't just possible....it's probable that you will be stopped out. If your platform doesn't support OTM/ITM then just look at the Deltas of the strike you would want to be...
Forum: Options February 27th, 2015, 12:37 PM
Replies: 2
Views: 1,240
Posted By ACstudio
Your position will be adjusted...

Your position will be adjusted accordingly....your risk profile, Deltas etc will be the same. What sucks is that you will probably end up with some funky strikes and future volume may trade mostly...
Forum: Options January 28th, 2015, 02:39 PM
Replies: 2
Views: 1,947
Posted By ACstudio
Every study I have seen suggests that selling a...

Every study I have seen suggests that selling a straddle outperforms buying a straddle by a long shot. So I would ask that person to back that statement up with some sort of data....show me 100...
Forum: Options January 26th, 2015, 11:25 PM
Replies: 6
Views: 3,420
Posted By ACstudio
The way I look at it this logic is especially...

The way I look at it this logic is especially important in short term trades as the Gamma risk to the options pricing will be at it's highest and going higher.

Let's say for example when you put...
Forum: Options January 22nd, 2015, 08:03 PM
Replies: 6
Views: 3,420
Posted By ACstudio
The credit spread is a defined risk trade. The...

The credit spread is a defined risk trade. The most you can lose is the width of the spread minus the credit received. If it is stressing you then you're trading too big. This is a trade where you...
Forum: Options December 22nd, 2014, 10:28 PM
Replies: 4
Views: 1,310
Posted By ACstudio
Ye spreads work well to reduce capital...

Ye spreads work well to reduce capital requirements for trading options. When I look to create an ATM spread I will first consider the Implied volatility. If the IV rank seems high I will prefer to...
Forum: Options December 19th, 2014, 01:18 PM
Replies: 4
Views: 1,310
Posted By ACstudio
The P/L is for the whole spread. Generally for...

The P/L is for the whole spread. Generally for me if I put it on as a spread I take it off as a spread. Just taking one side off completely changes your risk profile.

I will occasionally buy...
Forum: Options December 12th, 2014, 12:58 PM
Replies: 4
Views: 8,000
Posted By ACstudio
There is no arbitrage left... anywhere....for...

There is no arbitrage left... anywhere....for retail traders. The problem with your spreads...for example the PANW...is that the bid ask is 2$ wide. You won't get a fill at the mid price shown on...
Forum: Options December 11th, 2014, 06:10 PM
Replies: 7
Views: 4,596
Posted By ACstudio
If your poor man's covered call short strike is...

If your poor man's covered call short strike is in the money near expiration you should be over all at a profit (unless your having front month volatility issues). As you will have collected most of...
Forum: Options December 11th, 2014, 05:46 PM
Replies: 2
Views: 1,403
Posted By ACstudio
That's pretty much it. The difference is in the...

That's pretty much it. The difference is in the break even. If you buy the stock your break even is the price you paid. If you buy the option your break even is the strike price + the amount paid....
Forum: Options November 21st, 2014, 02:26 PM
Replies: 90
Views: 30,901
Posted By ACstudio
I can't imagine that the buying power reduction...

I can't imagine that the buying power reduction is "tiny". If I were to sell the SPY 205 put right now for .01 it would be over 3k in buying power reduction. If I owned it why in the world would I...
Forum: Options November 21st, 2014, 12:32 PM
Replies: 90
Views: 30,901
Posted By ACstudio
Because unless it's cheaper to let them expire...

Because unless it's cheaper to let them expire worthless then I look to put the buying power to use now rather than wait until Monday....but I would have done that some time ago if it was profitable...
Forum: Options November 21st, 2014, 11:58 AM
Replies: 90
Views: 30,901
Posted By ACstudio
What are you waiting for....you only have .03%...

What are you waiting for....you only have .03% left to make and it's pure gamma risk right now. And with a few hours left in the day you can take it off and re-establish the capital somewhere else...
Forum: Options November 12th, 2014, 04:43 PM
Replies: 12
Views: 5,586
Posted By ACstudio
Which is why I took the time to use "I" and "me"...

Which is why I took the time to use "I" and "me" quite a lot.


OTM can be anywhere....in their study they are selling straddles and strangles....but all OTM or ATM....how far out is up to the...
Forum: Options November 12th, 2014, 01:17 PM
Replies: 12
Views: 5,586
Posted By ACstudio
There is a pricing advantage to the sellers of...

There is a pricing advantage to the sellers of options as well as the fact that you collect theta decay and/or volatility contraction.

I cap my gains because I know that the so-called unlimited...
Showing results 1 to 25 of 35
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