Options Mentoring

[cutz]

Hi Guys,

Anyone know where i can get daily info on SPY option assignments, i just want to keep track of which strikes are getting assigned daily.

BTW, sorry about my short lived burst of public euphoria, try not to do it again.

 

[wayneL]

Hi Guys,

Anyone know where i can get daily info on SPY option assignments, i just want to keep track of which strikes are getting assigned daily.

Don't know cutz.

BTW, sorry about my short lived burst of public euphoria, try not to do it again.

Uncle Ben saved the world see....

 

[wayneL]

***wonders if after a 50 SP point move in three days, we are in for another one way market.

Already been doing a two-step, quick-step and a bossa nova, a little Victor Silvester, and a Rudy Valentino on my Sept options.

***wishes Uncle Ben would STFU! :

 

[Grinder]

Hi Guys,

Anyone know where i can get daily info on SPY option assignments, i just want to keep track of which strikes are getting assigned daily.

no idea either.

BTW, sorry about my short lived burst of public euphoria, try not to do it again.

fortunatly I 'shat my daks' & closed all my DDs when it was heading down, now just holding a couple of WTFOTM puts in case it rears it's head again.

***wonders if after a 50 SP point move in three days, we are in for another one way market.

Already been doing a two-step, quick-step and a bossa nova, a little Victor Silvester, and a Rudy Valentino on my Sept options.

***wishes Uncle Ben would STFU! :

Im prepin myself for it.

 

[cutz]

Thanks anyhow guys,

Reason i ask is i initiated a short fly last night centered around the US am price which i later changed my mind and turned into a backspread by closing out the lower wing, a little uneasy about copping an early assignment if the stock heads south but i guess in the unlikely event that the short leg gets assigned the spread should perform as originally intended when the S&P 500 cops a pummeling.

Not 100% sure how to handle a mix of long stock and long puts in a spread but i'll cross that bridge when i get to it.

BTW it's not a huge spread so assignment wont be a problem.

 

[Fox]

Greetings. This is my first post and I would like to say hello to everyone. I have been fascinated by your forum threads as they have opened my eyes quite a lot. I'm grateful for the effort you guys put in to help novices like myself.

I have noticed Cottle mentioned a lot in here and decided to get myself a copy of his latest book. Hopefully, after reading his book I can follow the forum threads better. Also thanks to forum members I have joined Interactive Brokers and that alone saved my tons as compared to my naive earlier days with ETRADE and CommSec.

The concept of morphing was/is new to me. I used to accept defeat when my trade went against me. I am very determined to learn how to morph properly. I relish every line written in this thread to pick up as much as I can. Again, hopefully reading Cottle's book from cover to cover and trying to follow your posts will help me get there one day (and soon ... ).

For now, can I get help with abbreviations. I know that most forums will have a thread on this but I have not been able to find it using the search function. In particular I am unsure that the "WTF" in "WTFOTM" means. The only "WTF" I know is from the gutter .

Thanks everyone. And hello all!

 

[cutz]

For now, can I get help with abbreviations. I know that most forums will have a thread on this but I have not been able to find it using the search function. In particular I am unsure that the "WTF" in "WTFOTM" means.

Welcome Fox,

WTFOTM= Way the f*** out of the money or in other words deeply out of the money.

 

[mazzatelli]

Not 100% sure how to handle a mix of long stock and long puts in a spread but i'll cross that bridge when i get to it.

If assigned, short the calls to replicate -put
Welcome Fox

 

[Grinder]

The concept of morphing was/is new to me. I used to accept defeat when my trade went against me. I am very determined to learn how to morph properly. I relish every line written in this thread to pick up as much as I can. Again, hopefully reading Cottle's book from cover to cover and trying to follow your posts will help me get there one day (and soon ... ).

hey fox, Cottles a tough read (for me anyways) so take your time with it & don't be deterred if you don't get it staright away. Suggest registering free at www.riskdoctor.com/index.html where lessons are sent with activities, this makes it easier to digest if you aint a quant or rhode scholar.

 

[Fox]

Thanks for the welcome cutz, mazza and grinder.

Thanks for explaining WTFOTM, cutz. Ah! my mind wasn't in the gutter after all

Grinder, I have survived chapter 1 of the book by registering for the free course RD1. I'm still considering signing up for the paid course RD2 to assist with the rest of the book.

I'm certainly no rhodes scholar and can only dream of being a quant. So, I'll need to really work at this. I like Wayne's method of collecting premium with adjustments in between. If I can get that from Cottle's book, I'll be over the moon. If anyone can point me to good threads here with regard to adjustments, that would be much appreciated.

 

[mazzatelli]

Already been doing a two-step, quick-step and a bossa nova, a little Victor Silvester, and a Rudy Valentino on my Sept options.

At your age? :

Ugh. I felt the brunt of the morning strength today on the Nikkei

 

[wayneL]

At your age? :

Ugh. I felt the brunt of the morning strength today on the Nikkei

Well I would prefer to quietly sip my beer in the corner, but will dance for food.

 

[Grinder]

Thanks for the welcome cutz, mazza and grinder.

Thanks for explaining WTFOTM, cutz. Ah! my mind wasn't in the gutter after all

Grinder, I have survived chapter 1 of the book by registering for the free course RD1. I'm still considering signing up for the paid course RD2 to assist with the rest of the book.

I'm certainly no rhodes scholar and can only dream of being a quant. So, I'll need to really work at this. I like Wayne's method of collecting premium with adjustments in between. If I can get that from Cottle's book, I'll be over the moon. If anyone can point me to good threads here with regard to adjustments, that would be much appreciated.

Spend some time on the search function & you'll find loads invaluable dialogue from Waynel, Mazza, Sails & others. The adjustment/morphing will come with time & practice, stay on Cottle & keep working on the craft & you'll be up to speed in no time. Will post some links to docs tommorow.

 

[Grinder]

Fox, go half way down in the link below, it might give you alittle of what your after.

https://www.aussiestockforums.com/forums/showthread.php?t=14164&highlight=options+adjustments&page=2

 

[Fox]

Thanks for the link Grinder.That post was exactly what I was looking for. I am not at the stage to comprehend it fully yet but with Cottle's book and the post you dug up, I should eventually get there. I pretty much have the same question as Cutz in post #8 of that thread ie. when should adjustments be done to defend a short position.

Right now, my impression is that adding/subracting verticles and butterflys is the essence of adjusting. Knowing when to adjust is the part I have to figure out. I read chapter 5 of Cottle where he described adjusting straddles using verticles. In that section, he adjusts to lock in profits and he describes it as a better method to gamma scalping.

On a related topic, has anyone observed or mentioned the similarities of option dissection and the fourier series? In the case of the fourier series, it is quite amazing that a square wave is made up of multiple sine waves. In a similar way, it is astounding to know that an iron condor is made up of butterflies. Who figured this out? Was it Cottle? Anyone know? Whoever it was, like Fourier, he's a genius. It's too mind boggling for my simple mind.

 

[mazzatelli]

Hi Fox,
Engineering background?

Charles, wouldn't have been the first to invent dissection, but definitely the first educator to introduce it to retail.

 

[suhm]

hi new to options here and have been doing a bit of reading and had a few questions I hadn't been able to find or figure out an answer to.

1. Is there a formula to determine an option price not using a normal distribution? I've only done some stats courses since high school so its a bit beyond me to try to alter the black scholes equation myself.

2. If the current share price is 20c and a call option is exercisble for 30c but you are issued with 2 shares, would you then put 40c as the share price and would delta being 200% alter the value of the option?

3. I have a problem with liquidity in some of the shares that I wish to purchase, i.e. I would not mind buying at the last share price or I am the last one who bought and wish to buy more but there is often a gap up to about 40% until the next shares are offered at limit.
Do the option market makers cover less liquid stocks?
I'm guessing probably not but I haven't activated my account yet so I don't know.
I figured at this stage I'd definitely just lose money trading options and the time decay doesn't really suit me so I was just trying to use them to augment my curent investment style.

 

[wayneL]

hi new to options here and have been doing a bit of reading and had a few questions I hadn't been able to find or figure out an answer to.

1. Is there a formula to determine an option price not using a normal distribution? I've only done some stats courses since high school so its a bit beyond me to try to alter the black scholes equation myself.

2. If the current share price is 20c and a call option is exercisble for 30c but you are issued with 2 shares, would you then put 40c as the share price and would delta being 200% alter the value of the option?

3. I have a problem with liquidity in some of the shares that I wish to purchase, i.e. I would not mind buying at the last share price or I am the last one who bought and wish to buy more but there is often a gap up to about 40% until the next shares are offered at limit.
Do the option market makers cover less liquid stocks?
I'm guessing probably not but I haven't activated my account yet so I don't know.
I figured at this stage I'd definitely just lose money trading options and the time decay doesn't really suit me so I was just trying to use them to augment my curent investment style.

Are your questions regarding company options, or exchange traded options? Your questions 2 & 3 seem to indicate company options.

 

[Fox]

Engineering background?

Hey Mazza,
Good guess. Electrical Eng background, but that was many, many moons ago. Hardly had any opportunities to put waveform dissection to work when working as an engineer. Hopefully, options dissection will have (successful) practical applications for me.

Really enjoying Charles' book at the moment. I'm a slow reader and it's a tough read. The more I get it, the more I appreciate the generous contributions from guys like yourself, Grinder, Wayne, Cutz etc. It's precious info. Thanks very much guys.

BTW, I read somewhere in this forum that you were a quant. Is that true?

Cheers,
Fox.

 

[mazzatelli]

Awesome!!!
Know quite a few people with hard science and engineering bg that became traders.

The oldies [, they will kill me one day] sails and WayneL have at least 2 decades of trading experience b/t them [Wayne may have more, I heard he is the undead], so like you I am grateful for their contributions.

I've only had trading roles[finance related] before & after completing post grad in QF few years ago. Dislike and refuse to be a coder/developer despite the greater job security. LOL
Also did a year of time as an accountant. Ugh.