Replies to post #2667 on °¿°

[Myself °¿°]

• The better money is in selling options letting the gravity of decay work for you. (Sell decay)
• It is even better when you catch the I/V at the top of the stroke (Sell the I/V)
Like just recently... see I/V chart bottom of post
But selling naked both sides is tough and scares me.

I used to try buying both sides
After, I would freeze when I saw the loss on one side bigger than the gains from the other...
only to have it work for me if I just had faith in the trade.

Here is your visual
10~XLFJT Oct20c xlf 10~xlfvt Oct20p

Layout
10~XLFJT Oct20c @2.30
xlf
10~xlfvt Oct20p @.90

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2mo Daily
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XLF - 6 Months




Understanding Implied and Historical Volatility

Table for: XLFJT Oct20c, xlfvt Oct20p

 
          Symbol       XLFJT       xlfvt             
                                         
            Type  XLF Oct 08  XLF Oct 08 
                     20 Call      20 Put 
                                         
                                         
         Bid/Ask * 2.15/2.30   0.88/0.90 
           Delta      0.6780     -0.3220 
                                         
  Expires (days)          20          20 
    Implied Vol.       71.54       77.93 
     1 Day Decay     -0.0369     -0.0368 
                                         
   Intrinsic Val        1.45        0.00 
    Time Premium        0.78        0.89 
                                         
       Stk Price     * 21.45     * 21.45 
                                         
                                         
          Loaded   9/27/2008   9/27/2008 
                     6:38 PM     6:38 PM