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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.
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.
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
Nov
26
asked Are there comprehensive analyses of theta decay in weekly options?
Nov
26
answered What are good conditions to roll a leap further out in time?
Nov
17
awarded  Commentator
Nov
12
accepted Calculating Theta assuming other variables remain the same
Nov
12
comment Calculating Theta assuming other variables remain the same
that is true, thank you
Nov
12
accepted Standard Deviations out the money where options will respond to underlying asset price changes
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.
Nov
12
accepted Options: Vertical LEAPS
Nov
12
answered Options: Vertical LEAPS
Nov
10
asked Calculating Theta assuming other variables remain the same
Nov
7
revised Options: Vertical LEAPS
clarifying that it is a bull call debit spread
Nov
6
revised Options: Vertical LEAPS
added 187 characters in body
Nov
6
revised Options: Vertical LEAPS
added 4 characters in body
Nov
6
revised Options: Vertical LEAPS
added 4 characters in body
Nov
6
asked Options: Vertical LEAPS
Nov
5
asked Can options volume have an impact on the price of the underlying asset?
Nov
4
asked Standard Deviations out the money where options will respond to underlying asset price changes