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| bio | website | |
|---|---|---|
| location | ||
| age | ||
| visits | member for | 1 year, 8 months |
| seen | May 19 at 14:20 | |
| stats | profile views | 94 |
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Dec 4 |
comment |
Are there comprehensive analyses of theta decay in weekly options? extrinsic value is everything that is not intrinsic value... so theta, volatility. |
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Dec 3 |
comment |
Are there comprehensive analyses of theta decay in weekly options? yes, assume at the money or 1 strike out of the money where the extrinsic value is greatest. |
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Dec 3 |
revised |
Are there comprehensive analyses of theta decay in weekly options? added 136 characters in body |
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Dec 3 |
revised |
Are there comprehensive analyses of theta decay in weekly options? image added |
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Dec 3 |
answered | When people say calculate moving average for 30 days include weekends or not? |
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Dec 2 |
asked | Analysis of Unbalanced Covered Calls |
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Nov 28 |
accepted | What does the VIX formula measure and how does it work? |
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Nov 28 |
comment |
Does an option's price “ratio” with the underlying security price? there is reason to option pricing, and the parts that do not follow reason, just brush those aside as "volatility" and "slippage". you need to learn the reason part because a lot of your questions seem like you jumped in with some very specific instructions but no knowledge of the mechanics |
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Nov 27 |
comment |
What are good conditions to roll a leap further out in time? Okay, you just need to understand the underlying concepts and then do your own simulations and backtests so you can add your own variables, since there are hundreds of things you can do with options. When volatility is high you can expect it to get lower, which allows you to earn more premium faster from your short option. the back month option will be pretty much unphased. Earning more premium is always better. The front month is more expensive, and it makes you back month less expensive, making your capital expenditure for the same amount of leverage to be less. |
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Nov 26 |
comment |
What are good conditions to roll a leap further out in time? lets assume that they are both the exact same strike price, just different expirations points, then yes, the ratio should still be the same. |
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Nov 26 |
comment |
What are good conditions to roll a leap further out in time? theta theta theta theta theta! theta is synonymous with time value. You have to think of options as insurance, you pay more for longer coverage, and when people think the coverage is worthless (like... 1 day before expiration and out of the money) then the option is near worthless. theta gradually decreases throughout the lifespan of the option. with LEAPS, there is a lot of theta no matter how much intrinsic value is there. |
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Nov 26 |
comment |
What are good conditions to roll a leap further out in time? the effect of volatility decreases the further out you go (because nobody expects market conditions to be the exact same 6,12,24 months from now). the more time you have, the less important the entry is. so on your front month leap, theta decay is accelerating and you can expect volatility to deflate the price as well. you are aiming for a new debit in this spread, so the back month should be expensive solely due to theta |
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Nov 26 |
asked | Are there comprehensive analyses of theta decay in weekly options? |
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Nov 26 |
answered | What are good conditions to roll a leap further out in time? |
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Nov 17 |
awarded | Commentator |
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Nov 12 |
accepted | Calculating Theta assuming other variables remain the same |
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Nov 12 |
comment |
Calculating Theta assuming other variables remain the same that is true, thank you |
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Nov 12 |
accepted | Standard Deviations out the money where options will respond to underlying asset price changes |
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Nov 12 |
comment |
Can options volume have an impact on the price of the underlying asset? I am familiar with pinning, but I do guess that some players hedge with the underlying stock. |
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Nov 12 |
accepted | Options: Vertical LEAPS |
