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Strategies & Market Trends : Calls and Puts for Income

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To: dealmakr who wrote (5659)1/27/2013 9:07:10 PM
From: Robohogs   of 5891
 
Deal,

As used her, it is return on notional if exercised. On the other measure, most way out options meet with ver low delta risk giving way to potential gamma moves if way way wron. I want to be paid for that tail risk, and I still believe that is one place in mkts paying for the risk be ause modt do not want it.

One commentator I follow thinks this grinding can continue for a long while UNTIL LT IVs also come in. I find myself extending out at the moment combined with very ST event driven plays.

Jon
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