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#1
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sell febs, buy aprils *NM*
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#2
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Re: sell febs, buy aprils
So you end up long the April puts at the debit or long the April calls at the debit...why? |
#3
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long puts, > 1:1, cpn sucks, but febs dead *NM*
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#4
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Re: long puts, > 1:1, cpn sucks, but febs dead
Which strike? This trade is a loser.Alot of things have to happen for it to be profitable. One is that the volatility must remain or go above present levels...very doubtful. |
#5
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a lot of things? like what?
I don't really do options. But I do think selling the Feb 7.50 puts was a pos-ev trade. And you can hedge the delta and the vega, and inverse hedge the gamma or something, using long April 7.50's, which you want to be long anyway, so you save a commission. So far, it is a good trade, it has shown a profit, so one of those "things" must have happened eLROY |
#6
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Re: a lot of things? like what?
Aren't you saying sell the Febs and buy the Aprils 1 to 1? Well that spread closed at 1.25. That spread will collapse if we go up,sideways..or if we move down slowly.You want to be long the April 7.50 puts at 1.25 or the 7.50 calls at 1.25? Why? It doesnt make sense to put on this position and then hedge it.What hedge will you use. |
#7
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Re: a lot of things? like what?
eLROY, I was hoping for a response to my inquiry.I am off the boards for two weeks of fishing and some poker playing.Just sell the friggin July 5.00 puts for a buck or better.Don't hedge.Yes you will lose if we collapse to zero..don't sell hundreds,how about 50? If we are below 5 in July you can sell some of the deferred 5 calls.If you must you can short some stock,but I would be careful about that.This is not rocket science.I have said this before.The problem with many traders is they want to make money with no risk.Forget,theta,beta.Use some common sense.And I repeat selling Feb 7.50 and buying the April is a big mistake.Just sell the Jull 5.00 and take the buck. |
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