This is not true. A long put position would profit from a 10% drop in the underlying. Another example is a ratioed calendar where a black swan either direction...
18412
christianhgross
Apr 5, 2010 9:10 pm
Fair enough I was quick on the trigger... But since we are getting into details... I would not call a 10% drop a black swan. It is a big drop, but nowhere...
18413
Ronald T
rwttkd
Apr 9, 2010 2:44 am
Hello Group, I have a question, A relative of mine recieved a long term 10 year call option from verizon in 2000 with a strike price of $41.00. I looked at the...
18414
Chris Madrolle
cmadrolle
Apr 9, 2010 12:57 pm
If the exercise price of the option is $ 41.00 and the current stock price of Verizon is $ 31.00 this option is clearly 'under-water' and is worthless. For...
18415
Kenneth Ginsberg
ken_ginsberg
Apr 9, 2010 1:00 pm
Ron: One would have to know all of the various contingencies surrounding the option itself to make a 100% certain response, but typically options given to an...
18416
TheOptionClub
clslaw
Apr 9, 2010 1:03 pm
Traditional advice on employee stock options is pretty limited and will not get your relative very far. Fortunately for them, John Summa, Ph.D., recently...
18417
newbie_candy
Apr 16, 2010 5:52 am
Hi, I am new to the club. I realize that this thread is already 6 years old, but I still want to chip in my 2 cents to the discussion. I break up option...
18418
Pats-fan
bmaltz1954
Apr 16, 2010 1:40 pm
I am back testing iron condors to learn more about trading them and was wondering if it is practical to adjust them. I thought it might be, but my analysis...
18419
Kae Man
kaeman50
Apr 16, 2010 1:42 pm
Hi; I am also new to the group. I trade options as well, and I look at the end of the day for options that have moved in the ending price; intraday and...
18420
Jon
domybit
Apr 16, 2010 1:43 pm
Candy,  Mathematically, trading options is a zero-sum game. What the buyer gains the seller loses, or vice versa. However, as Phil says, this is not...
18421
StanG
arigato12000
Apr 16, 2010 11:43 pm
Hi Have a look at: breakthroughbacktesting.com There is plenty about back testing Iron Condors on that site. Including a spread sheet. Stan...
18422
Jack
switch1947
Apr 17, 2010 12:12 pm
TOS will graph option prices and even combinations (spreads, etc.) (Right Click on the option and choose Quick Chart. You can detach the chart to a separate...
18423
doylegroup_2000
Apr 17, 2010 3:11 pm
Greetings - ThinkorSwim TOS charts will chart individual options on all time frames. Keep in mind not all options trade actively esp. if you are looking over...
18424
John Leavitt
johnjohnleavitt
Apr 17, 2010 9:47 pm
Has anybody had experience with the above trading service, at T hink or swim, they go under wise options, as a result of Ameritrade purchase of tos. They offer...
18425
M Syed
msyed1964
Apr 17, 2010 9:48 pm
Commence with Gratitude to The Most Benevolent, The Ultimate Knower Markets Outlook: Please see attached my proprietary time cycle generator. It has,...
18426
mcatolico
karensoich
Apr 18, 2010 12:20 am
The fact that the loser may consider himself a winner is exactly what keeps me laying this (zero-sum) game. J From: OptionClub@yahoogroups.com...
18427
Jack
switch1947
Apr 18, 2010 12:28 am
Or the guy that buys a protective put. If the underlying goes up or at least does not drop, his put will expire worthless but it was insurance, an expense he...
18428
rvd
rvdidit
Apr 19, 2010 3:52 am
I absolutely have to jump in here. Paying Insurance is always a loss!!! If the insurance companies are some of the most profitable companies on earth, and they...
18429
Ricky Jimenez
rickyjim2001
Apr 19, 2010 12:37 pm
The trouble I have with this question is that I have never seen a precise specification of what the numbers are that have to add up to zero. And I have looked...
18430
Joey Huckabee
naguse
Apr 19, 2010 3:01 pm
I may have missed something here... but isn't the reason options are a zero sum game because they cease to exist after expiration? I mean if you keep looking...
18431
rvd
rvdidit
Apr 19, 2010 4:18 pm
Joey, To me, you hit it on the nail with the last sentence; "This makes them different from equity shares, in theory, because they represent a growing and on...
18432
praesto12
Apr 19, 2010 8:36 pm
I think, generally, that people try to force reality to fit into very tight boxes of black/white, right/wrong and reality has a funny habit of smacking us in...
18433
praesto12
Apr 19, 2010 8:37 pm
Do any of you guys write covered calls? Is this the best strategy for a newbie?  ________________________________ From: Jack <jack@...> To:...
18434
praesto12
Apr 19, 2010 8:39 pm
Yes, generally I agree with you about insurance and I like the counterpoint.  I think it was Robert Kiyosaki that was promoting the value of being prepared...
18435
HankF
hanksterr
Apr 19, 2010 8:39 pm
Does anybody know a good GS strategy next week. I am thinking of doing Double Diagonal Calendar Spreads and scalping with the trend. Comments. Hank...
18436
ArthurS
comedynight2000
Apr 19, 2010 8:39 pm
If the insurance companies are some of the most profitable companies on earth, and they dont provide any goods to a society 1> they are not some of the most...
18437
praesto12
Apr 19, 2010 8:43 pm
Options do seem like a very fuzzy-logic sort of situation.  I really dont' know specifically what one means by the term "zero-sum game" ?  I generally...
18438
Jack
switch1947
Apr 19, 2010 9:28 pm
It’s like a poker game. If you win, someone has to lose (and the house takes a cut). Look at an individual option. If I buy a call for $1, the seller gets...
18439
mcatolico
karensoich
Apr 19, 2010 10:36 pm
That’s exactly right. Options and all trading vehicles with very limited exceptions are all zero sum (like a poker game): for every dollar gained there is...
18440
Ricky Jimenez
rickyjim2001
Apr 20, 2010 12:19 am
The difference between options and poker is that there is a definite beginning and end of a poker game and that beginning and end applies to all players so it...
