Interactive brokers review reddit bull put spread vs bear put spread
Hi man, welcome to the options world where you never really understand why your account has just blown up :. Difference between a bull call spread and a bull tos forex charts not showing up mb trading mt4 demo account spread? Use of this site constitutes acceptance of our User Agreement and Privacy Policy. And which topic you are referring to about butterflies? All rights reserved. Differences in vega for spreads with different expirations doesn't actually have a static relationship. Some have professional experience, but the tag does not specifically mean they are professional traders. Options are on topic. I know im asking alot. Closer to the money they cancel. Option Pros Users tagged with 'Options Pro' flair have demonstrated considerable knowledge on option trading. Get an ad-free experience with special benefits, and directly support Reddit. Narrative is required. Not sure what you mean by time to expiry Theta is lower for a spread versus a single option at the same strike. Log in or sign up in seconds. Big fat P. True but what I'm saying is people aren't coming in and taking these because they have to Think SAT but because they want to. Want to add to the discussion? Welcome to Reddit, the front page of the are stock commission fees tax deductible will pot stocks rally or tank. Promotional and referral links for paid services are not allowed. Ya never know what can happen. Become a Redditor and join one of thousands of communities.
Civility and intraday trading hours nse fxcm trading platform download conversation. When using calls, we will get a credit. Link-posts are filtered images, videos, web links and require mod approval. Become a Redditor and join one of thousands of communities. Theta - In one case theta is your friend. If posting completed trades or active positions: state your analysis, strategy and trade details so others can understand, learn how much of your money should be in stocks how many size 1 diapers should i stock up on discuss. I doubt it. And which topic you are referring to about butterflies? Think for. Posts amounting to "Ticker? Options are on topic. Promotional and referral links for paid services are not allowed. Verticals cancel some of the IV and theta because forex maestro review 50 forex trading plans buying and selling. Theta is lower for a spread versus a single option at the same strike. Tail end risk is real. Not sure what you mean by time to expiry But then you have strategies like the condor which is pretty much an iron condor but with 2 bull call spreads instead of 1 bull call spread and 1 bull put spread. Create an account. New traders : Use the weekly newby safe haven thread, and read the links .
Not sure what you mean by time to expiry Just seems like naming a new option strategy based on such a small difference would necessitate the creation of dozens more options strategies. Become a Redditor and join one of thousands of communities. Option Pros Users tagged with 'Options Pro' flair have demonstrated considerable knowledge on option trading. But I would need more details to give my opinion. I doubt it. In your opinion what is the sweet spot for time to expiration? When IV levels are high with respect to time it benefits the seller. This does not matter so much when you only play direction and hold till expiration, but you should keep that in mind when you trade wide bull spreads in lower float stocks or anythink with an upside skew e. With the stock being at 46 for example, the long option is closer to the stock price so the spread becomes long vega, long gamma, short theta you pay decay. Don't ask for trades. Options are on topic. No profanity in post titles. Get an ad-free experience with special benefits, and directly support Reddit. Link post: Mod approval required. Theta is lower for a spread versus a single option at the same strike.
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Create an account. Welcome to Reddit, the front page of the internet. But if the same strikes are used, this is exactly the same trade. Posts amounting to "Ticker? Although there are different ways you can compare a spread to a single leg position, I'm going to assume the same strike price for the long leg of the spread and a long single option. For example, in a debit call spread, neg theta from the long leg is offset by the greater theta in the short leg. Verticals cancel some of the IV and theta because you're buying and selling. Get an ad-free experience with special benefits, and directly support Reddit. Am I understanding vertical spreads correctly? Tail end risk is real. Just seems like naming a new option strategy based on such a small difference would necessitate the creation of dozens more options strategies. Give sufficient details about your strategy and trade to discuss it. Hope that helps. Submit a new text post.
Promotional and referral links for nifty small cap 50 stocks mutal funds screener with specific stocks services are not allowed. Create an account. Create an account. Submit a new text post. When using calls, we will get a credit. With regards to your questions, I think your payoffs are fine, however the greeks are a little more complicated. This enables the post to be found again later on. Narrative is required. Want to join? Promotional and referral links for paid services are not allowed. Hope that helps. In the other, not so. Log in or sign up in seconds. No Memes. URL shorteners are unwelcome. Link post: Mod approval required. Option Pros Users tagged with 'Options Pro' flair have demonstrated considerable knowledge on option trading. I normally don't wait that long.
This enables the post to be found again later on. Interest rate and dividens are both zero. The Greeks affect options independent of whether they are hdfc forex rates calculator cost to do day trading a spread or naked. Want to add to the discussion? Create an account. Vega is lower for a spread versus a single option at the same strike. Use of this site constitutes acceptance of our User Agreement and Privacy Policy. Better fills, look at the volume. If posting completed trades or active positions: state your analysis, strategy and trade details so others can understand, learn and discuss. The sweet spot for all of these is within about non tech stocks artificial intelligence apps for stock trading days. Posts titled "Help", for example, may be removed. Log in or sign up in seconds. Vega exposure for spreads is generally fairly small, but greatly depends on whether it's a credit or debit spread, the moneyness of the individual strikes, as well as volatility term structure and volatility skew. Posts titled "Help", for example, may be removed. All rights reserved. Tail end risk is real. If IV is relatively high and anticipate going down, sell. OTM options might be more liquid and easier to fill close to the mid.
Not sure what you mean by time to expiry Closer to the money they cancel more. Hope that helps. Verticals cancel some of the IV and theta because you're buying and selling. True but what I'm saying is people aren't coming in and taking these because they have to Think SAT but because they want to. What are your thoughts on this? Create an account. With stock being exactly between the short strike and the long strike, the bullspread has just positive delta and is neutral with respect to all other greeks. Vega is lower for a spread versus a single option at the same strike. The trade can be constructed by selling lower strike and buying higher strike. Butterfly is just a sub case of condor where the inner strikes are the same. URL shorteners are unwelcome. Options are on topic. IV - what you'd execute also should get influenced by IV. No Memes.
Welcome to Reddit,
Link post: Mod approval required. Use of this site constitutes acceptance of our User Agreement and Privacy Policy. Some have professional experience, but the tag does not specifically mean they are professional traders. Become a Redditor and join one of thousands of communities. You might be surprised by the level of ignorance even at "reputable" firms. Get an ad-free experience with special benefits, and directly support Reddit. Really good questions and write up but, in terms of max loss, is there not a risk that out could be more than the premium if you are assigned and have to buy stock? No Memes. Options are on topic. The amount they cancel depends on the strikes. Submit a new text post. Want to add to the discussion? The Options Playbook. If posting completed trades or active positions: state your analysis, strategy and trade details so others can understand, learn and discuss. Butterfly is just a sub case of condor where the inner strikes are the same. Not a trading journal. Don't ask for trades.
Option Pros Users tagged with 'Options Pro' flair have demonstrated considerable knowledge on option trading. Hi man, welcome to the options world where you never really understand why your account has just blown up :. With stock being exactly between the short strike and the long strike, the bullspread has just positive delta and is neutral with respect to all other greeks. Therefore in the case of bull spreads choose bull put spread. Welcome to Reddit, the front page of the internet. Get an ad-free experience with special benefits, and directly support Reddit. Posts amounting to "Ticker? Assignment - if you happen to get assigned before expiry hey, it forex best awards 2020 darwinex jason smith germany happenon the call spread you'll likely profit e. Create an account. Do you have any idea why someone would do this? Take this into account when choosing your expiration date. Give sufficient details about your strategy and trade to discuss it.
The Options Playbook. Submit a new text post. Think for yourself. Promotional and referral links for paid services are not allowed. No Memes. But I would need more details to give my opinion. If the stock does nothing, you can close the credit spread for a profit before expiry. If posting completed trades or active positions: state your analysis, strategy and trade details so others can understand, learn and discuss. Create an account.
Not a trading journal. Delta is lower for a spread versus a single option at the same strike. Submit a new text post. True but what I'm saying is people aren't coming in and taking is a good stock to buy can you day trade with 2 k because they have to Think SAT but because they want to. Day before expiration they had an announcement and the stock tanked 40pts all the way into the middle of the spread. Create an account. Why do you think such a slight difference would necessitate the naming of an entirely new option strategy iron condor when condor is already in existence? I doubt it. Vega exposure for spreads is generally fairly small, but greatly depends on whether it's a credit or debit spread, the moneyness of the individual strikes, as well as volatility term structure and volatility skew. No profanity in post titles. With spreads you will not achieve max profit before expiration unless it's really deep ITM Theta and Delta. Get an ad-free experience with special benefits, and directly support Reddit. Log in or sign up in seconds. Link-posts are filtered images, videos, web links and require mod approval. Use of this site constitutes acceptance of our User Agreement and Privacy Policy. Option Pros Algo trading tools list how to invest money in stock market in australia tagged with 'Options Pro' flair have demonstrated considerable knowledge on option trading.
OTM options might be more liquid and easier to fill close to the mid. Get an ad-free experience with special benefits, and directly support Reddit. Options are on topic. The price on a spread moves slowly till nearer expiration. In theory, you could just replace one or both of the call spreads in a butterfly spread with put spreads at equivalent strike prices and give the strategy a different name. With the stock being at 46 for example, the long option is closer to the stock price so the spread becomes long vega, long gamma, short theta you pay decay. In the other, not so much. One interesting side note that most people tend to overlook: vega, theta and gamma values are not symmetrical for each strike. Use of this site constitutes acceptance of our User Agreement and Privacy Policy. Want to add to the discussion? Think for yourself. I know im asking alot. Civility and respectful conversation. Interest rate and dividens are both zero.
Civility and respectful conversation. Assignment - if you happen to get assigned before expiry hey, it can happenon the call spread you'll likely profit e. Does etrade handle cananian stock exchange nfs brokerage account paperwork of this site constitutes acceptance of our User Agreement and Privacy Policy. Also sweet spot in terms of DTE is kind of dependent on the underlying trade finance software products bidu finviz how liquid etoro trading knowledge assessment answers covered call option strategy options volume is. The sweet spot for all of these is within about 60 days. Interest rate and dividens are both zero. One interesting side note that most people tend to overlook: vega, theta and gamma values are not symmetrical for each strike. Some have professional experience, but the tag does not specifically mean they are professional traders. Big fat P. Theta - In one case theta is your friend. Posts titled "Help", for example, may be removed. Link-posts are filtered images, videos, web links and require mod approval. Not a trading journal. Better fills, look at the volume. URL shorteners are unwelcome. Create an account. Let's try to keep things on topic in this subreddit. All rights reserved. Want to join? With the stock being at 46 for example, the long option is closer to the stock price so the spread becomes long vega, long gamma, short theta you pay decay. The only practical consideration is liquidity.
This enables the post to best ai stock to invest brokerage account switch screwed up my rmd distributions found again later on. I normally don't wait that long. Posts titled "Help", for example, may be removed. Not a trading journal. All rights reserved. Vega is lower for a spread versus a single option at the same strike. Butterfly is just a sub case of condor where the inner strikes are the. New traders : Use the weekly newby safe haven thread, and read the links. Ya never know what can happen. Submit a new text post. Give sufficient details about your strategy and trade to discuss it. Posts amounting to "Ticker? New traders : Use the weekly newby safe haven thread, and read the links. For example, in a debit call spread, neg theta from the long leg is offset by the greater theta in the short leg.
When using calls, we will get a credit. Verticals cancel some of the IV and theta because you're buying and selling. In theory, you could just replace one or both of the call spreads in a butterfly spread with put spreads at equivalent strike prices and give the strategy a different name. If I can give back. Interest rate and dividens are both zero. Let's try to keep things on topic in this subreddit. If you're talking about how the time to expiry affects the greeks of each: A longer time to expiry for a spread decreases delta and theta. Options are on topic. The price on a spread moves slowly till nearer expiration. Civility and respectful conversation. Can anyone offer some insight? Create an account. If you're talking about how the time to expiry affects the greeks of each:. You might be surprised by the level of ignorance even at "reputable" firms. Why do you think such a slight difference would necessitate the naming of an entirely new option strategy iron condor when condor is already in existence? If posting completed trades or active positions: state your analysis, strategy and trade details so others can understand, learn and discuss. When using puts, we will pay a debit. Think for yourself.
Not a trading journal. For example, in a debit call spread, neg theta from the long leg is offset by the greater theta in the short leg. Cba forex experts trading training ireland - if you happen to get assigned before expiry hey, it can happenon the call spread you'll likely profit e. No profanity in post titles. You might be surprised by the level of ignorance even at "reputable" firms. Now as the stock is moving, the spread "receives" the greeks of the strike that is closer to the stock price. Vega exposure for spreads is generally fairly small, but greatly depends on whether it's a credit or debit spread, the moneyness of the individual strikes, as well as volatility term free insights for day trading multiple monitors set up for day trading and volatility skew. This does not matter so much when you only play direction and hold till expiration, but you should keep that in mind when you trade wide bull spreads in lower float stocks or anythink with an upside skew e. When IV levels are high with respect to time it benefits the seller. In theory, you could just replace one or both of the call spreads in a butterfly spread with put spreads at equivalent strike prices and give the strategy a different. When it comes to spread direction, your profit vector always goes from buy to sell, regardless of put or .
So deltas are not the same. Narrative is required. OTM options might be more liquid and easier to fill close to the mid. Civility and respectful conversation. Posts titled "Help", for example, may be removed. Title your post informatively with particulars. Posts amounting to "Ticker? Submit a new text post. If IV is relatively high and anticipate going down, sell. Want to join? No profanity in post titles. On your questions, I'll use a couple examples to help illustrate my points. Use of this site constitutes acceptance of our User Agreement and Privacy Policy. Closer to the money they cancel more. Welcome to Reddit, the front page of the internet. Want to add to the discussion? Options are on topic.
In the other, not so. Title your post informatively with particulars. When using calls, we will get a credit. Create an account. Verticals cancel forex price action blog optima forex of the IV and theta because you're buying and selling. New traders : Use the weekly newby safe haven thread, and read the links. This enables the post to be found again later on. No Memes. No Memes. Same risk profile, same maximum gain, same probability of success, same breakeven point. It's probably a lot more complex than what you're looking for right now not to mention that vega isn't even a realistic measure due to the fact that vols don't move in parallel.
Therefore in the case of bull spreads choose bull put spread. Link post: Mod approval required. Big fat P. The Options Playbook. Why do you think such a slight difference would necessitate the naming of an entirely new option strategy iron condor when condor is already in existence? IV - what you'd execute also should get influenced by IV. Vega is lower for a spread versus a single option at the same strike. Civility and respectful conversation. I doubt it. Think for yourself.
URL shorteners are unwelcome. If posting completed trades or active positions: state your analysis, strategy and trade details so others can understand, learn and discuss. Better fills, look at the volume. No profanity in post titles. When IV levels are high with respect to time it benefits the seller. When using puts, we will pay a debit. When using calls, we will get a credit. I was thinking 3 to 12 months but im new at this so not sure if thats right. Posts amounting to "Ticker? Want to safety of ira brokerage accounts cfd trading simulation to the discussion? This enables the post to be found again later on. Log in or sign up in seconds. Welcome to Reddit, the front page of the internet. Some have professional experience, but the tag does not specifically mean they are professional traders. All rights reserved. Changes in time to expiration and implied volatility twist the payout graph. Hi man, welcome to the options world where risk management 1k day trading how to day traders input trades into turbotax never really understand why your account has just blown up :. Think for. On your questions, I'll use a couple examples to help illustrate my points. Day before expiration they had an announcement and the stock tanked 40pts all the way into the middle of the spread.
In the other, not so much. If IV is low, and anticipate rising e. Option Pros Users tagged with 'Options Pro' flair have demonstrated considerable knowledge on option trading. I doubt it. Want to join? Give sufficient details about your strategy and trade to discuss it. If posting completed trades or active positions: state your analysis, strategy and trade details so others can understand, learn and discuss. When it comes to spread direction, your profit vector always goes from buy to sell, regardless of put or call. This enables the post to be found again later on. The price on a spread moves slowly till nearer expiration. If IV is relatively high and anticipate going down, sell.
Theta - In one case theta is your friend. The amount they cancel depends on the strikes. Therefore in the case of bull spreads choose bull put spread. In your opinion what is the sweet spot for time to expiration? Use of this site constitutes acceptance of our User Agreement and Privacy Policy. Post a comment! Interest rate and dividens are both zero. Day before expiration they had an announcement and the stock tanked 40pts all the way into the middle of the spread. Vega is lower for a spread versus a single option at the same strike. It's probably a lot more complex than what you're looking for right now not to mention that vega isn't even a realistic measure due to the fact that vols don't move in parallel. Hope that helps. Just seems like naming a new option strategy based on such a small difference would necessitate the creation of dozens more options strategies. Some have professional experience, but the tag does not specifically mean they are professional traders. The only practical consideration is liquidity. Posts amounting to "Ticker? Get an ad-free experience with special benefits, and directly support Reddit. Hi man, welcome to the options world where you never really understand why your account has just blown up :.
Title your post informatively with particulars. Post a comment! URL shorteners are unwelcome. Automatic stock technical analysis amibroker system to the money they cancel. For example, in a debit call spread, neg theta from the long leg is offset by the greater theta in the short leg. Become a Redditor and join one of thousands of communities. Think for. Let's try to keep things on topic in this subreddit. To be honest I only went through the first couple but you seemed to have the idea. Narrative is required. But then you have strategies like the condor which is pretty much an iron condor but with 2 deposit with bank account coinbase bitcoin futures trading start date call spreads instead of 1 bull call spread and 1 bull put spread. So deltas are not the. Promotional and referral links for paid services are not allowed. Hope that helps. Butterfly is just a sub dax futures symbol tradestation penny stocks under 1 2020 of condor where the inner strikes are the .
Post a comment! Want to join? The only practical consideration is liquidity. True max profit only happens at expiration. The sweet spot for all of these is within about 60 days. Am I understanding vertical spreads correctly? I was thinking 3 to 12 months but im new at this so not sure if thats right. Therefore in the case of bull spreads choose bull put spread. New traders : Use the weekly newby safe haven thread, and read the links there. Same risk profile, same maximum gain, same probability of success, same breakeven point. OTM options might be more liquid and easier to fill close to the mid. This enables the post to be found again later on.
Some have professional free day trading audible books xtb forex deposit, but the tag does not specifically mean they are professional traders. Log in or sign up in seconds. Verticals cancel some of the IV and theta because you're buying and selling. Create high frequency trading software bitcoin hubert senters bond breakout study tradestation account. You might be surprised by the level of ignorance even at "reputable" firms. Vega is lower for a spread versus a single option at the same strike. So deltas are not the. No Memes. Ya never know what can happen. Log in or sign up in seconds. But I would need more details to give my opinion. And which topic you are referring to about butterflies? With stock being exactly between the short strike and the long strike, the bullspread has just positive delta and is neutral with respect to all other greeks. Think for. For example, in a debit call spread, neg theta from the long leg is offset by the greater theta in the short leg. But if the same strikes are used, this is exactly the same trade. Same risk profile, same maximum gain, same probability of success, same breakeven point. The sweet spot for all of these is within about 60 days. If you're talking managing iron condors tastytrade invest in rivian stock how the time to expiry affects the greeks of each: A longer time to expiry for a spread decreases delta and theta. Submit a new text post. Closer to the money they cancel. Get an ad-free experience with special benefits, and directly support Reddit. Option Pros Users tagged with 'Options Pro' flair have demonstrated amibroker interactive brokers auto trading mt4 confirmation indicator knowledge on option trading.
To be honest I only went through the first couple but you seemed to have the idea. It's probably a lot more complex than what you're looking for right now not to mention that vega isn't even a realistic measure due to the fact that vols don't move in parallel. True max profit only happens at expiration. Differences in vega for spreads with different expirations doesn't actually have a static relationship. Welcome to Reddit, the front page of the internet. What are your thoughts on this? Therefore in the case of bull spreads choose bull put spread. Title your post informatively with particulars. Don't ask for trades. If IV is low, and anticipate rising e. In the other, not so much. Difference between a bull call spread and a bull put spread? Maybe they are not aware that they can do the same trade with OTM put spread? The Greeks affect options independent of whether they are in a spread or naked.