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Large ATMU trades : were they sold calls or a bull call spread?

Here's all the options trades for ATMU on 2024-03-21 that had a premium greater than $10,000: I've highlighted two that were both of size 10,000. In both of those, the price is closer to the 'bid'. I....
dharmatech's user avatar
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2 answers
123 views

What's the capital needed in order to achiev $500 monthly with Options Trading

I'm looking for some advice on to achieve a monthly income equal to my monthly expenses which is 500$ - I already have a portfolio of monthly dividend stocks valued at around $1,200, which provides me ...
MorMinimumWageGuy's user avatar
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2 answers
328 views

Poor Man Covered Call Trade Selection and Set up

I did some learning on the PMCC strategy and thinking to implement it on SPY. As the reading materials urged I have been trying to make sure the initial set up long ITM LEAP at around 0.8 delta, and ...
ML33M's user avatar
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1 answer
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Can you effectively reduce the cost of a long call on an index with a synthetic long and married put (e.g. replicate an XSP call using SPX options)?

Imagine you want to use periodic cashflows to purchase deep-in-the-money LEAPS (>1yr expiration calls) on SPX, but the size of the cashflows are too small to do so consistently (the cost of such a ...
Thomas's user avatar
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290 views

How to properly hedge indices futures NQ by selling leveraged index options TQQQ or SQQQ?

Is there a formal futures NQ vs TQQQ options contracts hedging ratio calculation/strategy to tap on the fast decaying value of weekly expiry TQQQ options thereby creating an asymmetric risk-reward ...
surewin's user avatar
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1 answer
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confusion about gamma and gamma portfolios

Generally, a long gamma portfolio will make money when the underlying: (a) out-realizes the historical volatility (measured close to close) (b) out-realizes the implied volatility (more than making ...
APerson's user avatar
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-1 votes
3 answers
184 views

IV applied to Buying Vs. Selling Option Contracts!

Is low IV (Implied Volatility) good for selling or buying options?
Youtubecomgoldminemusicinfo's user avatar
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1 answer
58 views

How to Roll Put Options (Buy to open)? (Bought to Open)

I have a put option that I bought to open but the market has moved against me. So I'm looking for a way out of the contract other than taking a huge loss. I want to know my options for rolling them ...
Youtubecomgoldminemusicinfo's user avatar
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1 answer
153 views

Bought Put Options that are getting close to Expiration

If I let my option expire ITM (Bought Put Option) I will then own those shares. My account won't allow me to do covered calls or covered puts so I can't leverage against them. What are my other ...
Youtubecomgoldminemusicinfo's user avatar
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250 views

How to calculate break even price on delta hedged portfolio?

The underlying currently trades at 10. Suppose you have a portfolio consisting of: 1 Call at strike 11 with premium 0.4 A short position of 25 shares Calculate the break even prices of this ...
eagerAnna's user avatar
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What's the negative about buying contracts 1 month out when scalping options? (Is it buying same day or 2-3 day contracts are way cheaper?)

What's the negative about buying contracts 1 month out when scalping options? (Is it buying same day or 2-3 day contracts are way cheaper?) I don't want Theta to negatively affect my gains.
Sed Mc's user avatar
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1 answer
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Best approach to select strike prices for an Iron Condor?

Options beginner here. I'm aware of three popular ways to select strike prices for Iron Condor. Select strikes such that they are equidistant from the CMP. Select strikes such that the they form a ...
Ronith 's user avatar
4 votes
0 answers
136 views

How can I bet against a particular stock in relation to the market?

I’ve heard people doing spread trades when they think one stock will do better/worse in comparison to another stock or index. I’m looking for details on exactly how this is done. Is there a particular ...
philfreo's user avatar
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Do I need to worry about dividends when trading credit spreads?

I trade in the options market, mostly with vertical credit spreads. If one of my underlyings has a dividend coming up, does that affect my holdings? My guess is that the short and long position would ...
PropositionJoe's user avatar
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3 answers
60 views

Maximum credit exposure to Over the counter straddle

A trader purchases a six month over-the-counter straddle on stock A for a 1 Million premium from a counterparty. The maximum credit exposure over the life of the trade is: 1)less than 1 Million. 2)...
Win_odd Dhamnekar's user avatar
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1 answer
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Option strategy, Black, Scholes and Merton Model and Lognormal distribution

The Black, Scholes and Merton option pricing model assumes the stock price changes are lognormally distributed. Then, How to show graphically How this distribution changes when 1a)an investor or/and ...
Win_odd Dhamnekar's user avatar
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1 answer
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Making a long put into a long put spread

Let's say I have a long put and it's Friday. I still think it has good potential to move down but I just want to be protected over the weekend in case the trade goes against me drastically because of ...
Howard's user avatar
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1 answer
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Long ratio put spread versus call strategy for stock of ABC company

Part(1) Long ratio put spread versus call strategy for ABC company Current market price:$639, view: moderately bearish Buy 2 February 630 Puts@ 35.00 Sell 1 February 660 Put@ 52.00 Sell 2 February 690 ...
Win_odd Dhamnekar's user avatar
0 votes
1 answer
83 views

Delta hedging of stock portfolio using options

In the aforesaid delta hedging of stock position, how was the delta of long stock computed by author ? In my opinion, total long position of 500 shares divided by the market lot of one put option ...
Win_odd Dhamnekar's user avatar
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3 answers
184 views

How far from the strike price is an option contract being exercised?

Say I sold a naked put at $30 strike price for an option premium of $1. Would the broker assign 100shares instantly to me when the stock price drops to $30(approximately) or only when price is below $...
surewin's user avatar
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1 vote
1 answer
163 views

Option pricing model: Black-Scholes-Merton model

Suppose, that a stock is priced at $ 400 and a volatility of 0.39. I buy a call option with an exercise price of $ 400 that expires in 3 months. The risk-free rate is 8%. Now, The theoretical value ...
Win_odd Dhamnekar's user avatar
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1 answer
112 views

Can both call and put option of the same strike price and same asset expire to zero on expiry date?

Suppose we are trading the call and put options for an underlying asset such as crude oil at a strike price of 1000. Will there be any scenario in which both the call option of strike price 1000 and ...
Rishi Sharma's user avatar
1 vote
1 answer
222 views

How Do I Construct a Long Short Portfolio Using Only Options?

I'm confused on how to construct a long short portfolio using strictly options. If I wanted to hedge stock, I would long stock A and short stock B by making sure that the quantity * price of A = ...
Bob Marshall's user avatar
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1 answer
79 views

When to sell put option

Buying a put option happens when market is going down. Correct. If that is true then when should one sell put option ?
nish's user avatar
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1 vote
1 answer
222 views

How does expiration/assignment work in synthetic covered call

What happens if I let a short call expire worthless on a synthetic long stock I've purchased. Here's my scenario. Bought a CALL @ 870 and sold a PUT @ 870 both expiring in 177 days. Also sold a CALL @ ...
Anonymous's user avatar
1 vote
1 answer
40 views

What does adding/removing stocks from optionable to non optionable and weekly to only regular, depend on?

Does a company require that its stock offer options as well as optionable/weekly or not optionable/regular? Or is it the OCC that controls this (depending on option trading volume?). How often does ...
huab's user avatar
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1 answer
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When I buy a option spread with different calendar dates, should I close every leg manualy?

When I buy a option spread with different calendar dates (september, 10-17-24, october, 1), should I close every leg manualy or they will be closed automatically even if they expired ITM ?
huab's user avatar
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1 answer
50 views

What are the different methods to manage a Call/Put Butterfly

I'm learning options and understand that there are different method to manage trades that go wrong. In case of the Call/Put butterfly whenever the price goes above upper breakeven or goes below lower ...
Martin's user avatar
  • 173
2 votes
2 answers
139 views

Option chain with nil bid quantity and price

Let's assume I bought a call option ABC CE @.50 and now its value is @.10. There is no bid price or bid quantity. Am I able to sell the option at @.10 anyway?
Paras's user avatar
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3 votes
2 answers
163 views

Significance of the word iron in option strategies

Why is the word iron used in some of the option strategies, like iron butterfly or iron condor ?
Martin's user avatar
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2 answers
142 views

Managing Long Straddle

Am a beginner in option trading. Recently started learning option strategies. The long straddle looked particularly appealing. However to make a profit the underlying needs to move, lets say around 2%....
Martin's user avatar
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0 answers
77 views

How do "Crabs" make money exactly? [duplicate]

So again i'm used to Crypto Currencies, and since im stupid i learn most things from threads from /biz/ (fortunately i still take decisions based on myself), i've seen plenty on lingo like a bull ...
Imeguras's user avatar
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1 vote
1 answer
120 views

Are future options per 100 unit?

In futures (for commodities, indices, fx...); Is 1 option for 100 future contracts ? For example: If I want to make a covered call option for Gold and for micro Dow jones future, How much should I buy ...
huab's user avatar
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0 votes
2 answers
147 views

Option Strategy - Put Sell goes wrong [closed]

I'm bit new on Option Trading and want to ask your opinion/strategy on certain situation. Say, the stock price is $110 and I sold a Put at a strike price $95 and expiry after 60days. After 3 or 4 days,...
Nazmul Hassan's user avatar
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1 answer
220 views

Iron condor - can the described scenario happen?

Options beginner here. Cannot wrap my head around this. Say I’m trading a long iron condor and the call spread ends up in the money on expiration. Now I can exercise the long call. So should I wait ...
krish47's user avatar
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2 answers
337 views

How do I find the probability of a sold put being assigned?

I read where if you sell a put you should make sure that the probability of being put the stock is no more than 30%. This is assuming of course that you don't really want to own the stock. How do I ...
Chris P's user avatar
1 vote
2 answers
532 views

Options trading: buy/sell to open/close terminology

I want to buy put options as I believe the price of the underlying asset is going down. In the linked video here at around 1:10 there is a bit saying that for short positions, you 'sell to open' to ...
jeremy_rutman's user avatar
3 votes
1 answer
108 views

For an individual brokerage account user, what is the cheapest way to take a short position in a stock?

As far as I know, if I want to sell short, say, $100 worth of stock I need to post $150 in cash collateral and pay some fees each day. Another way is to buy a put option. In that case, I need to pay ...
James's user avatar
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13 votes
1 answer
32k views

Closing Shorted Positions via Short Ladder Attacks

From my understanding in a short ladder attack investors bid lower and lower prices to drive down the stock value. I assume in many cases this will scare retail investors into selling further ...
EpicFoodCartDestroyer's user avatar
1 vote
1 answer
554 views

Why roll a credit spread out and keep the same strike price?

I’m confused. Why would you ever buy the same strike price when rolling out a bull put spread if the price has moved against you? If the price ever falls below the price you sold the put for, you can ...
Dinosaur Reporter's user avatar
1 vote
3 answers
164 views

Trading with options and turn in profits

Yesterday I read an article about how someone was able to turn $ 200 into $ 113,000 in just one day by buying call options on a particular stock. The article also showed a screenshot which appears to ...
Stefan Falk's user avatar
2 votes
1 answer
55 views

Should the change in price of a synthetic (long call + short put) ever be different from the change in price of the underlying?

On my paper brokerage account, I can see that this appears to not hold true ... Daily P&L Financial Instrument Position Last Market Value Prior Close Change (Last - Prior Close) 310 ...
Gabi's user avatar
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0 votes
2 answers
83 views

Transfer money out of IRA using stock options?

Is there a stock option strategy that allows one to transfer money out of an IRA brokerage account into a non-IRA brokerage account without incurring penalty?
Tiffany J Anguiano's user avatar
1 vote
2 answers
236 views

What are the risks involved in buying a synthetic long (long call short put) and letting it expire compared to buying the underlying?

As an EU resident, I am not allowed to purchase US-based ETFs. However, I am allowed to trade in options on such ETFs and exercise them. One way of obtaining the stocks I would want to purchase is by ...
Gabi's user avatar
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1 vote
1 answer
50 views

Implied Volatility, % Change in the Option Chain

The following is the Options Chain of CRM (Salesforce) for March 19, 2021. A few questions from the chart: What does the % Change mean in this chart? What does the Volume mean? At the $300 strike, I ...
wonderful world's user avatar
1 vote
2 answers
155 views

How are put and call options reported wrt taxes?

My broker tells me that option transactions are reported for tax purposes as two independent transactions. That is, the net profit or loss is not reported. Instead, the receipts from the sale of the ...
RussAbbott's user avatar
3 votes
1 answer
151 views

Is short term capital loss worth more than long term capital loss?

Let's say someone has already realized a lot in short term and long term capital gains for a given year. And the same person has also unrealized short term capital loss that will turn into unrealized ...
user4910112's user avatar
2 votes
4 answers
1k views

What's to stop me from selling Iron Condors one day before expiration?

AAPL is currently trading at ~115. I can construct the following Iron Condor that expires tomorrow. It has close to a 1:1 R/R ratio: BUY APPL 121 CALL SELL AAPL 120 CALL SELL AAPL 110 PUT BUY AAPL ...
cardycakes's user avatar
0 votes
1 answer
63 views

What Strategy are these option writers following?

This is the option chain from NIFTY Index about a month from expiry. Apart from speculation what strategy could these option writers be following by writing in the money calls at 10000 or puts at ...
Namit Sinha's user avatar
2 votes
2 answers
293 views

Is it important to understand option pricing models before trading options?

Options seem to be one of the most complex financial instruments generally available to retail investors. The common advice given to beginners (at least on this site) is that beginners "must ...
Flux's user avatar
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